USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.85% against the JPY on Friday and closed at 79.54. The Japanese Yen came under pressure after Bank of Japan Governor, Masaaki Shirakawa stated that the central bank would keep monetary policy loose.
In the Asian session, at GMT0400, the pair is trading at 79.57, with the USD trading 0.04% higher from Friday’s close. The Yen drifted lower this morning after Japanese merchandise trade deficit widened to ¥1,475.0 billion in January, compared to a downwardly revised ¥205.6 billion deficit recorded in December.
The pair is expected to find support at 79.07, and a fall through could take it to the next support level of 78.57. The pair is expected to find its first resistance at 79.98, and a rise through could take it to the next resistance level of 80.39.
The pair is expected to trade on the cues from the release of Coincident Index and Leading Economic Index in Japan, later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
