USD/JPY: Yen Rises On Positive Economic Data In Japan

USD/JPY: Yen Rises On Positive Economic Data In Japan

For the 24 hours to 23:00 GMT, the USD weakened 0.93% against the JPY and closed at 93.32. The Yen strengthened against the dollar after a G7 official stated that the group’s statement was misinterpreted and was intended to signal concern over excessive movement in value of the yen. Meanwhile, the Swiss National Bank Chairman, Thomas Jordan defended actions by the Bank of Japan to defeat inflation and indicated that global central banks are not engaged in a currency war.

On the economic front, consumer confidence index in Japan advanced to a reading of 43.3 in January, compared to a reading of 39.2 recorded in the previous month. Annually, Japan’s machine tool orders fell 26.1% in January, slower than a fall of 27.5% reported in the previous month.

In the Asian session, at GMT0400, the pair is trading at 92.90, with the USD trading 0.45% lower from yesterday’s close.

In morning news, the seasonally adjusted tertiary industry activity index in Japan rose 1.4% (MoM) in December, compared to a downwardly revised 0.4% drop posted in November. Meanwhile, the domestic corporate goods price index (CGPI) edged up 0.4% (MoM) in January, compared to a downwardly revised 0.2% rise posted last month.

The pair is expected to find support at 92.34, and a fall through could take it to the next support level of 91.77. The pair is expected to find its first resistance at 93.94, and a rise through could take it to the next resistance level of 94.98.

The currency pair is trading bel