USD/JPY: Japanese Yen extends its gains in the morning session


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD declined 1.77% against the JPY and closed at 108.20 on Friday.

In the Asian session, at GMT0400, the pair is trading at 106.87, with the USD trading 1.23% lower against the JPY from Friday’s close.

Overnight data showed that Japan’s machinery orders unexpectedly climbed 2.9% on a monthly basis in January, defying market expectations for a drop of 1.6% and compared to a decline of 12.5% in the previous month.

The Bank of Japan, in its latest meeting, kept its interest rate unchanged at -0.1%, as expected. However, the central bank stated it would take additional monetary easing steps as needed without hesitation with a close eye on the impact from the coronavirus epidemic.

The pair is expected to find support at 105.01, and a fall through could take it to the next support level of 103.16. The pair is expected to find its first resistance at 108.61, and a rise through could take it to the next resistance level of 110.36.

The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.

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