For the 24 hours to 23:00 GMT, the USD rose 0.47% against the JPY and closed at 108.41.
In the Asian session, at GMT0400, the pair is trading at 108.48, with the USD trading 0.06% higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s services PMI unexpectedly dropped to a level of 49.4 in December, declining to its lowest level in since September 2016 and compared to a reading of 50.3 in the prior month. Market participants had envisaged the PMI to rise to a level of 50.6.
The pair is expected to find support at 108.10, and a fall through could take it to the next support level of 107.73. The pair is expected to find its first resistance at 108.68, and a rise through could take it to the next resistance level of 108.89.
Moving ahead, investors would closely monitor Japan’s consumer confidence index for December, set to release overnight.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
