For the 24 hours to 23:00 GMT, the USD declined 0.92% against the JPY and closed at 111.49.
In the Asian session, at GMT0400, the pair is trading at 111.65, with the USD trading 0.14% higher against the JPY from yesterday’s close.
Minutes of the Bank of Japan’s (BoJ) January monetary policy meeting showed that board members rejected suggestions that the central bank should raise its 10-year government bond yield target in the future to match expected gains in treasury yields. Members held the view that Japan’s inflation and growth will accelerate in the foreseeable future, but it remains a difficult task due to concerns about greater uncertainty in global financial markets.
In economic news, Japan’s adjusted merchandise trade surplus widened to a level of ¥680.3 billion in February, hitting its highest level since April 2010, compared to a revised trade surplus of ¥204.0 billion in the prior month. Markets were expecting the nation’s trade surplus to expand to a level of ¥550.8 billion.
Additionally, the nation’s exports grew the most in more than two years, after it climbed 11.3% YoY in February, surpassing market expectations for an advance of 10.1%, as demand from China and other regions of Asia jumped. Exports had advanced 1.3% in the prior month. Meanwhile, the nation’s imports recorded a less-than-expected rise of 1.2% on an annual basis in February, against market consensus for a gain of 1.3% and after recording a rise of 8.5% in the previous month.
Early morning data showed that the nation’s all industry activity index unexpectedly increased 0.1% in January, defying market expectations for a flat reading. In the prior month, the index had recorded a revised drop of 0.2%.
The pair is expected to find support at 111.09, and a fall through could take it to the next support level of 110.52. The pair is expected to find its first resistance at 112.54, and a rise through could take it to the next resistance level of 113.42.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
