USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD strengthened 0.55% against the JPY and closed at 82.86.
Data released in Japan showed that the Markit/JMMA manufacturing Purchasing Managers’ Index (PMI) climbed to a reading of 51.1 in March, marking the highest level in seven month. Additionally, housing starts climbed 7.5% (YoY) in February, the first rise in six months.
In the Asian session, at GMT0300, the pair is trading at 83.14, with the USD trading 0.43% higher from Friday’s close.
The yen came under pressure amid speculation that the central bank would boost monetary stimulus, after disappointing results from the Bank of Japan’s quarterly Tankan survey, which showed lingering weakness in sentiment among the nation’s large manufacturers.
The Bank of Japan’s Tankan large manufacturers’ index remained unchanged at a reading of -4.0 in the first quarter of 2012, missing market expectations for a reading of -1.0.
The pair is expected to find support at 82.23, and a fall through could take it to the next support level of 81.33. The pair is expected to find its first resistance at 83.67, and a rise through could take it to the next resistance level of 84.21.
The currency pair is trading well above its 20 Hr and 50 Hr moving averages.
