USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.41% against the JPY and closed at 79.61.
The Yen fell after the International Monetary Fund (IMF) stated that the Yen is “moderately overvalued” and there was a chance of further yen appreciation due to Europe’s debt crisis. Addressing a news conference IMF First Deputy Managing Director, David Lipton stated that intervention can be used to counter volatile currency movements.
However, the IMF further added that it still believes Japan’s economy would continue to recover and that GDP would grow 2% this year and 1.7% next year as forecasted.
In the Asian session, at GMT0300, the pair is trading at 79.62, with the USD trading flat from yesterday’s close.
In economic news, core machine orders in Japan rose 6.6% (YoY) in April, compared to the fall of 1.1% in March.
The pair is expected to find support at 79.35, and a fall through could take it to the next support level of 79.08. The pair is expected to find its first resistance at 79.79, and a rise through could take it to the next resistance level of 79.96.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
