For the 24 hours to 23:00 GMT, the USD marginally rose against the JPY and closed at 108.12.
In the Asian session, at GMT0300, the pair is trading at 108.27, with the USD trading 0.14% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s merchandise (total) trade deficit unexpectedly narrowed to ¥136.3 billion in August, following a revised deficit of ¥250.7 billion in the previous month. Market participants had expected deficit to widen to ¥365.4 billion.
The pair is expected to find support at 108.10, and a fall through could take it to the next support level of 107.94. The pair is expected to find its first resistance at 108.39, and a rise through could take it to the next resistance level of 108.52.
Moving ahead, traders would closely monitor Bank of Japan’s interest rate decision, set to release early morning tomorrow.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.