USDJPY SUPPORTED BY WEAK JAPANESE DATA

The USDJY pair continues to remain well supported above the 111.20 level in early Friday trading, as weaker than expected Japanese manufacturing data for June weakened the Japanese Yen. The pair has advanced towards intraday resistance at 111.40, as Japanese PMI manufacturing fell to a seven-month low at 52.1.

Later today the USDJPY pair will look to United States data, with the release of manufacturing and services PMI's for June, alongside U.S new home sales data and a key speech by the FOMC member Jerome Powell.

Technically the USDJPY remains neutral in the short term, with the pair currently struggling to close above the 111.45 area, however, the pair trades above the daily pivot point at 111.23, and continues to find buyers below the key 111 level.

In the medium term, a series of higher time frame price closes above the 111.45 level should support further buying towards resistance at 111.80 and 112.55.

The weekly time frame 200 period moving average remains a strong support for the USDJPY, at 110.98, with the H4 time frame 100 period moving average solid intraday support at 110.54.