For the 24 hours to 23:00 GMT, the USD declined 0.09% against the JPY and closed at 108.87.
In the Asian session, at GMT0400, the pair is trading at 108.85, with the USD trading slightly lower against the JPY from yesterday’s close.
Overnight data indicated that Japan’s retail trade unexpectedly surged to a 5-year high level of 7.1% on a monthly basis in September, defying market expectations for a fall of 0.2%. In the prior month, retail trade had recorded a revised advance of 4.6%. Further, the nation’s large retailer’s sales surprisingly climbed 10.0% on a monthly basis in September, compared to a revised rise of 0.3% in the prior month. Market participants had envisaged the large retailer’s sales to drop 1.7%.
The pair is expected to find support at 108.73, and a fall through could take it to the next support level of 108.61. The pair is expected to find its first resistance at 108.99, and a rise through could take it to the next resistance level of 109.13.
Moving ahead, traders would keep an eye on Japan’s industrial production for September, set to release overnight.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
