USD/JPY: Japanese Yen trading higher this morning


USDJPY Movement

For the 24 hours to 23:00 GMT, the USD rose 0.71% against the JPY and closed at 111.26.

On Tuesday, the minutes of the Bank of Japan’s (BoJ) October monetary policy meeting showed that policy makers sounded pessimistic over the decision of allowing bond yields to move more flexibly around the central bank’s zero percent target, highlighting division within the board. However, the board members agreed on the need to maintain monetary policy ultra-loose for the time being.

Data showed that Japan’s final leading economic index eased to a level 99.6 in October, following a level of 104.3 in the prior month. The preliminary figures had indicated a fall to a level of 100.5.

In the Asian session, at GMT0400, the pair is trading at 110.96, with the USD trading 0.27% lower against the JPY from yesterday’s close.

Earlier today, data showed that Japan’s housing starts retreated 0.6% on an annual basis in November, compared to a rise of 0.3% in the previous month. Also, the nation’s construction orders tumbled 10.7% on an annual basis in November, following a decline of 16.5% in the preceding month.

The pair is expected to find support at 110.36, and a fall through could take it to the next support level of 109.75. The pair is expected to find its first resistance at 111.49, and a rise through could take it to the next resistance level of 112.01.

Going ahead, investors would closely watch Japan’s unemployment rate, industrial production and retail trade data, all for November, set to release overnight.

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

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