For the 24 hours to 23:00 GMT, the USD declined 2.22% against the JPY and closed at 107.71.

In the Asian session, at GMT0300, the pair is trading at 107.40, with the USD trading 0.29% lower against the JPY from yesterday’s close.

Overnight data showed that Japan’s industrial production dropped 9.1% on a monthly basis in April, more than market expectations for a drop of 5.1% and compared to a fall of 3.7% in the previous month. Additionally, the unemployment rate climbed to 2.6% in April, compared to 2.5% in the previous month. Moreover, seasonally adjusted retail trade fell 9.6% on a monthly basis in April, compared to a decline of 4.5% in the prior month.

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The pair is expected to find support at 107.22, and a fall through could take it to the next support level of 107.05. The pair is expected to find its first resistance at 107.73, and a rise through could take it to the next resistance level of 108.07.

Looking ahead, traders would keep a watch on Japan’s annualised housing starts and construction orders, both for April along with the consumer confidence index for May, slated to release in a few hours.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.


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