USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.10% against the JPY and closed at 78.81.
In the Asian session, at GMT0300, the pair is trading at 78.62, with the USD trading 0.24% lower from yesterday’s close.
The Bank of Japan took surprisingly strong steps to further ease its monetary policy today morning, following similar steps by the Federal Reserve, as slowing global demand and heightening tensions with China hurt chances of a near-term recovery in the export-reliant economy.
The central bank expanded its asset buying and loan programme, currently its key monetary easing tool, by ¥10 trillion ($123 billion) to ¥80 trillion, with the increase to be for purchases of government bonds and treasury discount bills. As widely expected, the central bank maintained its key policy rate in a range of zero to 0.1%.
The pair is expected to find support at 78.48, and a fall through could take it to the next support level of 78.34. The pair is expected to find its first resistance at 78.82, and a rise through could take it to the next resistance level of 79.02.
Trading trends in the pair today are expected to be determined by the release of leading index and coincident index data.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
