For the 24 hours to 23:00 GMT, the USD declined 0.85% against the JPY and closed at 105.51.
In the Asian session, at GMT0400, the pair is trading at 105.69, with the USD trading 0.17% higher against the JPY from yesterday’s close.
Early morning data showed that Japan’s preliminary leading economic index eased to a level of 104.8 in January, more than market expectations for a fall to a level of 106.5. In the previous month, the index had recorded a level of 107.4. Moreover, the nation’s flash coincident index registered a more-than-expected drop to a level of 114.0 in January, compared to market consensus for a fall to a level of 115.3. The index had registered a reading of 120.2 in the prior month.
The pair is expected to find support at 105.29, and a fall through could take it to the next support level of 104.88. The pair is expected to find its first resistance at 106.27, and a rise through could take it to the next resistance level of 106.84.
Going ahead, investors would keep a close watch on Japan’s final 4Q GDP and (BOP basis) trade balance data for January, both due to release overnight.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.