USD/JPY: Japan's Trade Deficit Widens

USD/JPY: Japan's Trade Deficit Widens

The USD weakened 0.80% against the JPY and closed at 103.12.

In the Asian session, at GMT0400, the pair is trading at 103.36, with the USD trading 0.24% higher from yesterday's close. Earlier today, an official report from Japan showed that trade deficit in the nation widened to ¥1,254.3 billion in November, from a deficit of ¥1,091.9 billion, registered in the preceding month. Additionally, the Bank of Japan (BoJ) reported that bank lending in the nation rose 2.3% (YoY) in December, following a 2.2% (YoY) rise witnessed in the previous month. Separately, the Cabinet Office's Eco watchers survey for the current economic situation of Japan rose to a reading of 55.7 in December, from previous month's level of 53.5. Meanwhile, the Eco watchers survey for the outlook of Japan economy edged down to a reading of 54.7 in December, from a figure of 54.8 recorded in November.

The pair is expected to find support at 102.95, and a fall through could take it to the next support level of 102.53. The pair is expected to find its first resistance at 103.68, and a rise through could take it to the next resistance level of 103.99.