USD/JPY Weakens Despite Lackluster Japanese Data
The USDJPY currency pair declined Monday, as a dearth of economic data in the United States outweighed weaker than forecast Japanese data.
The pair fell to a session low of 101.99 before consolidating north of 102. At 20:30 GMT, the USDJPY was trading at 102.25, a loss of nearly 0.3 percent. The pair came under pressure Friday after the Labor Department released disappointing US nonfarm payroll data. In technical terms, the picture for USDJPY is moderately bearish. Support is ascending at 101.34, 101.59 and 101.85. On the upside, resistance is ascending at 103.01, 103.27 and 103.52.
Economic data from Japan were disappointing to start the week. Consumer confidence slumped to a 13-month low, according to a government report. The Cabinet Office’s gauge of consumer confidence fell from 41.3 to 40.5, as consumers expressed less optimism about their overall economic well-being. Meanwhile, Japan’s current account slid to a four-month low, as the deficit widened to 0.2 trillion yen.
In the United States, an idle data wire shifted the market’s attention to Janet Yellen, who is scheduled to give a speech Tuesday. The recently appointed Chair of the Federal Reserve will give her first semiannual Humphrey-Hawkins testimony. After back-to-back months of poor jobs data, Yellen likely won’t feel compelled to defend the Fed’s record stimulus program.
US employers added 113,000 payrolls last month, following a slightly revised gain of 75,000 in November. Both figures were considerably lower than forecasts, suggesting the US labour market is beginning to lose momentum. With unemployment approaching the Fed’s 6.5 percent target, however, the Fed is widely expected continue the tapering process throughout the year.
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