Japan’s Unemployment Rate Unexpectedly Fell To A 26-Year Low Level In December

Fundamental analysis of Forex market

For the 24 hours to 23:00 GMT, the USD declined 0.17% against the JPY and closed at 108.85.

In the Asian session, at GMT0400, the pair is trading at 108.87, with the USD trading a tad higher against the JPY from yesterday’s close.

Overnight data showed that Japan’s final manufacturing PMI fell to a level of 50.3 in January, compared to a reading of 52.6 in the previous month. The preliminary figures had indicated a drop to a level of 50.0. Additionally, the nation’s unemployment rate unexpectedly eased to 2.4% in December, marking its lowest level in 26-years and defying market expectations for a steady reading. Unemployment rate had registered a reading of 2.5% in the previous month.

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The pair is expected to find support at 108.59, and a fall through could take it to the next support level of 108.31. The pair is expected to find its first resistance at 109.06, and a rise through could take it to the next resistance level of 109.25.

Going ahead, traders would await Japan’s Nikkei services PMI and trade balance data, set to release next week.

The currency pair is trading in between its 20 Hr and 50 Hr moving average.

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