For the 24 hours to 23:00 GMT on Friday, USD weakened 0.37% against the JPY and closed at 78.28, after the Federal Reserve Chairman, Ben Bernanke, left the door open to a further monetary easing.
In the Asian session, at GMT0300, the pair is trading at 78.26, with the USD trading marginally lower from Friday’s close.
Data released today morning showed that capital spending in Japan rose to an annual rate of 7.7% in the second quarter of 2012, against the market expectation for 8.9% rise.
The pair is expected to find support at 78.10, and a fall through could take it to the next support level of 77.93. The pair is expected to find its first resistance at 78.52, and a rise through could take it to the next resistance level of 78.77.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.