USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD strengthened 0.30% against the JPY and closed at 79.56, as positive consumer sentiment data from the US, strengthened belief that the a new round of QE might remain elusive.
Meanwhile, Japan’s government on Friday approved the budget guidelines for the next fiscal year from April 2013 with a focus on promotion of its growth strategy as it aims to strike a balance between efforts to prop up the economy and rein in ballooning debt. The Japanese government forecasted real economic growth of 1.7% in the fiscal 2013 following an estimated expansion of 2.2% in the current year.
In the Asian session, at GMT0300, the pair is trading at 79.55, with the USD trading flat from Friday’s close.
The pair is expected to find support at 79.35, and a fall through could take it to the next support level of 79.16. The pair is expected to find its first resistance at 79.70, and a rise through could take it to the next resistance level of 79.86.
Today, investors await leading index and coincident index data in the Japan.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
