For the 24 hours to 23:00 GMT, the USD declined 0.71% against the JPY and closed at 108.02.
On the macro front, Japan’s consumer confidence index unexpectedly rose to a level of 36.2 in October, defying market expectations for a drop to a level of 35.5. The index had registered a reading of 35.6 in the prior month. On the contrary, the nation’s housing starts dropped 4.9% on an annual basis in September, declining for the third consecutive month and less than market expectations for a fall of 6.7%. In the prior month, housing starts had declined 7.1%. Moreover, construction orders dropped 6.8% on a yearly basis in September, following a fall of 25.9% in the prior month.
In the Asian session, at GMT0400, the pair is trading at 108.03, with the USD trading marginally higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s unemployment rate advanced to 2.4% in September, more than market expectations for a rise to 2.3%. In the previous month, the unemployment rate stood at 2.2%.
The pair is expected to find support at 107.70, and a fall through could take it to the next support level of 107.36. The pair is expected to find its first resistance at 108.56, and a rise through could take it to the next resistance level of 109.08.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
