USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.23% against the JPY and closed at 81.37.
On the economic front, the leading index in Japan declined to a reading of 91.6 in September, compared to a reading of 91.7 in August. Meanwhile, the coincident index rose slightly to a reading of 91.5 in September, compared to a reading of 91.2 in the previous month. Additionally, machine tool orders fell 6.7% (YoY) in October, compared to a similar drop in the previous month.
In the Asian session, at GMT0400, the pair is trading at 81.26, with the USD trading 0.14% lower from yesterday’s close.
This morning, the Bank of Japan (BoJ), in a widely expected decision, decided to keep the monetary policy unchanged at 0%-0.1% by a unanimous vote and retained its asset-buying program at ¥91 trillion. The BoJ also stated that the economy has been weakening somewhat and is expected to remain relatively weak for the time being.
Additionally, Japan’s all industry activity fell 0.3% (MoM) in September. Analysts had forecast activity to expand 0.5% after remaining flat a month ago.
The pair is expected to find support at 81.08, and a fall through could take it to the next support level of 80.91. The pair is expected to find its first resistance at 81.43, and a rise through could take it to the next resistance level of 81.61.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
