USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 1.27% against the JPY and closed at 78.44, after the Bank of Japan surprisingly expanded its asset purchase program by ¥10 trillion.
In economic news, preliminary government report indicated that Japan’s Gross Domestic Product (GDP) declined an annualized 0.6% in the fourth quarter of 2011 compared to the previous three months.
In the Asian session, at GMT0400, the pair is trading at 78.54, with the USD trading 0.13% higher from yesterday’s close.
The pair is expected to find support at 77.86, and a fall through could take it to the next support level of 77.17. The pair is expected to find its first resistance at 78.94, and a rise through could take it to the next resistance level of 79.35.
The pair is expected to trade on the cues from the release of Machine Tool Orders in Japan, later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
