Yen Moves Lower Before Japan’s GDP Release

Friday, the Dollar (USD) pushed a bit higher against the yen (JPY). The USD/JPY closed at 102.12 and in today’s trade is fluctuating above the 20 and 50 day moving average at 102.064.

Investors are watching several data releases like the current situation which rose to 51.3 in July. The future outlook moved lower and is at 51.5. The industry index fell off 0.1 percent in June, losing the 0.9 percent the month prior. This week, Japan will be releasing its gross domestic product (GDP) number and we are expecting a large contraction.

Technically speaking, we see strong support at 101.70 with a break below that targeting 101.30/25 congestion zone. Resistance is at 102.40 with a break above that testing 102.60/65 resistance area.

Today’s trading trends for the yen and dollar will involve the Bank of Japan (BOJ) economic survey including data releases for consumer confidence and machine tool orders.