For the 24 hours to 23:00 GMT, the USD declined 1.25% against the JPY and closed at 108.77.
On the data front, Japan’s coincident index unexpectedly climbed to 95.8 in February, defying market consensus for a drop to a level of 95.1 and compared to a reading of 95.2 in the previous month. Additionally, the preliminary leading economic index unexpectedly rose to 92.1 in February, confounding market anticipations for a fall to a level of 90.4. In the prior month, the economic index had recorded a reading of 90.5.
In the Asian session, at GMT0300, the pair is trading at 108.81, with the USD trading marginally higher against the JPY from yesterday’s close.
Overnight data showed that Japan’s seasonally adjusted current account surplus widened to ¥3168.8 billion in February, surpassing market forecast for a surplus of ¥3061.9 billion. In the prior month, current account had recorded a surplus of ¥612.3 billion. Additionally, the nation’s trade surplus (BOP basis) stood at ¥1366.6 billion, compared to a deficit of ¥985.1 billion in the earlier month.
The pair is expected to find support at 108.50, and a fall through could take it to the next support level of 108.18. The pair is expected to find its first resistance at 109.14, and a rise through could take it to the next resistance level of 109.46.
Moving ahead, traders would keep an eye on Bank of Japan Governor Kuroda’s speech, slated to release in overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
