USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, the USD strengthened 0.49% against the JPY and closed at 78.00.
In Japan, housing starts fell 5.5% (YoY) in August, against the market expectation for a 7.5% fall.
In the Asian session, at GMT0300, the pair is trading at 77.88, with the USD trading 0.15% lower from Friday’s close.
This morning, the Bank of Japan (BoJ) in its Tankan survey reported that large Japanese companies were more pessimistic about business conditions in the three months to September, due largely to a slowdown in overseas economies and on following Yen’s rise against major currencies.
The large manufacturers’ business sentiment index fell to -3 in September survey, compared to -1 in the June survey, marking its fourth straight quarter in negative territory.
The pair is expected to find support at 77.51, and a fall through could take it to the next support level of 77.14. The pair is expected to find its first resistance at 78.18, and a rise through could take it to the next resistance level of 78.48.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
