USD/JPY: Yen trading tad higher with focus of Japan’s consumer inflation data

USDJPY

USDJPY Movement

For the 24 hours to 23:00 GMT, the USD weakened 0.13% against the JPY and closed at 102.50. The Japanese Yen rose against the US Dollar as lacklustre economic releases from US and China, coupled with escalating tensions in Ukraine, fuelled demand for safe-haven assets.

Meanwhile, the BoJ, in its a semi-annual report on Japan’s financial system, indicated that around 90% of the financial institutions in the nation have reduced investment in domestic bonds and have hiked their investment in relatively high-risk assets such as loans.

In the Asian session, at GMT0300, the pair is trading at 102.45, with the USD trading marginally lower from yesterday’s close. Early morning, an index measuring corporate service prices in Japan rose 0.7% (YoY) in March, less than market expectations and compared to a similar rate of rise in the preceding month.

The pair is expected to find support at 102.19, and a fall through could take it to the next support level of 101.94. The pair is expected to find its first resistance at 102.68, and a rise through could take it to the next resistance level of 102.91.

Market participants eagerly await Japan’s consumer inflation data to be released later today, for further insight in the BoJ’s next policy move.

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

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