For the 24 hours to 23:00 GMT, the USD declined 0.54% against the JPY and closed at 111.56.
In the Asian session, at GMT0300, the pair is trading at 111.64, with the USD trading 0.07% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate rose to 2.5% in March, compared to a rate of 2.3% in the previous month. Market participants had envisaged unemployment rate to rise to 2.4%. Moreover, the nation’s retail trade climbed 1.0% on an annual basis in March, higher than market consensus for a gain of 0.8%. In the previous month, retail trade had recorded a rise of 0.4%. Also, the large retailer’s sales unexpectedly advanced by 0.6% on a monthly basis in March, defying market anticipation for a fall to 1.0%. In the preceding month, large retailer’s sales had recorded a decline of 1.8%.
On the other hand, Japan’s flash industrial production dropped 4.6% on a yearly basis in March, declining at its quickest pace in almost five years and surpassing market expectations for a fall of 3.8%. In the prior month, industrial production had registered a decline of 1.1%.
The pair is expected to find support at 111.34, and a fall through could take it to the next support level of 111.04. The pair is expected to find its first resistance at 111.98, and a rise through could take it to the next resistance level of 112.32.
Looking forward, traders would await Japan’s housing starts for March, slated to release in a while.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
