USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.82% against the JPY and closed at 79.99. The Yen fell after Fitch Ratings downgraded Japan to ‘A+’ and issued a negative outlook on the country’s credit rating.
On the economic front, supermarket sales in Japan declined 1.9% (YoY) in April, following a 2.4% drop in March.
In the Asian session, at GMT0300, the pair is trading at 79.56, with the USD trading 0.53% lower from yesterday’s close. The Yen rose after Bank of Japan (BoJ) left its benchmark interest rate unchanged in the current range of 0 to 0.1% by a unanimous vote, and did not announce a further expansion to its asset purchase program.
Meanwhile, data just out revealed that merchandise trade deficit in Japan widened to ¥520.3 billion in April, against the market expectation for a deficit of ¥482.8 billion.
The pair is expected to find support at 79.21, and a fall through could take it to the next support level of 78.87. The pair is expected to find its first resistance at 80.03, and a rise through could take it to the next resistance level of 80.49.
The currency pair is trading below its 20 Hr and showing convergence with 50 Hr moving averages.
