USDJPY Movement
On Friday, the USD weakened 0.18% against the JPY and closed at 107.72.
On the macro front, the consumer confidence index in Japan surprisingly eased to a level of 39.9 in September, lower than market expectations of a rise to a level of 41.8 and compared to a reading of 41.2 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 107.12, with the USD trading 0.56% lower from Friday’s close.
On Sunday, the BoJ Governor, Haruhiko Kuroda in the G-20 meeting reiterated that Japan’s economy was recovering moderately and the central bank would continue with its quantitative easing programme as the nation was still only half-way mark towards achieving its 2% inflation target. He further added that both the central bank and the government were of the view that a weaker Yen would bolster the economic outlook of the nation.
The pair is expected to find support at 106.73, and a fall through could take it to the next support level of 106.33. The pair is expected to find its first resistance at 107.84, and a rise through could take it to the next resistance level of 108.56.
Meanwhile, investors look ahead to the BoJ’s outlook report, scheduled tomorrow.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
