COZforex: For the past trading, the USD strengthened 1.05% against the JPY and closed at 104.20, after upbeat retail sales data in the US for the month of December eased concerns that economic growth might be slowing.

Furthermore, the US business inventories 0.4% in November, following a strong 0.8% in the previous month, suggesting that consumers will increase spending in the months ahead.

In the Asian session, the pair is trading at 104.42, with the USD trading 0.21% higher from yesterday’s close.

On the macro front, the Bank of Japan reported that the M3 money supply in Japan rise 3.4% in December, in line with expectations, and compared to a revised 3.5% increase recorded in the previous month. In addition, on an annual basis, money supply M2+CD in Japan advanced 4.2% in December, following a revised increase of 4.4% recorded in the preceding month.

In technical analysis, COZforex senior currency strategist Ian • Quigley said, USD/JPY is predicted to find support at 103.60, and a drop through could take it to the next support line of 102.79. Meanwhile, the pair is predicted to find its first resistance at 104.86, and a rise through could take it to the next resistance line of 105.30.

Later today, the machinery orders from Japan would be on traders’ radar along with the Tertiary Industry Index. Meanwhile, other important economic releases from the US would also determine trading trends for the pair.

(COZ forex UK)