For the 24 hours to 23:00 GMT, the USD rose 1.85% against the JPY and closed at 109.90.

Data indicated that Japan’s preliminary machine tool orders plunged 33.6% on an annual basis in December, following a drop of 37.9% in the prior month.

In the Asian session, at GMT0400, the pair is trading at 109.93, with the USD trading slightly higher against the JPY from yesterday’s close.

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Overnight data showed that Japan’s machinery orders unexpectedly advanced 5.3% on a yearly basis in November, defying market expectations for a fall of 5.4%. In the previous month, machinery orders had recorded a decline of 6.1%. Meanwhile, the nation’s producer price index climbed 0.9% on a yearly basis in December, following a rise of 0.1% in the prior month.

The pair is expected to find support at 109.81, and a fall through could take it to the next support level of 109.7. The pair is expected to find its first resistance at 110.02, and a rise through could take it to the next resistance level of 110.12.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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