USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD strengthened 0.74 % against the JPY and closed at 79.96. The Yen came under pressure after housing starts in Japan grew at a slower pace of 9.3% (YoY) in May, while the construction orders declined 0.9% (YoY) in May.
In the Asian session, at GMT0300, the pair is trading at 79.75, with the USD trading 0.26% lower from Friday’s close.
This morning, Japanese Tankan large manufacturer’s outlook rose to a reading of 1.0 in 2Q FY 2012, while the Tankan large manufacturing index rose to a reading of -1.0 in 2Q FY 2012 from -4.0 recorded in the previous quarter. Additionally, the Tankan non-manufacturing index rose to a reading of 8.0 in 2Q FY2012.
The pair is expected to find support at 79.30, and a fall through could take it to the next support level of 78.84. The pair is expected to find its first resistance at 80.10, and a rise through could take it to the next resistance level of 80.44.
Trading trends in the pair today are expected to be determined by the release of monetary base data in Japan.
The currency pair is trading convergence with its 20 Hr and trading above its 50 Hr moving average.
