USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened marginally against the JPY and closed at 82.15.
In the Asian session, at GMT0400, the pair is trading at 82.42, with the USD trading 0.34% higher from yesterday’s close. The Yen came under pressure, as the Japanese cabinet approved ¥880 billion economic stimulus package. The cabinet indicated that the new spending package, which is more than double the government stimulus of ¥422.6 billion announced in October, is aimed to focus growth in sectors like health care, agriculture and public work projects.
Meanwhile, the yen was also affected by a slew of economic data released in the morning.
The unemployment rate stood stable at 4.2% in October, in line with expectations. Average household spending declined 0.1% (YoY) in October. Meanwhile, industrial output rose a seasonally adjusted 1.8% (MoM) in October, following the 4.1% decline in September. Separately, overall nationwide consumer prices fell 0.4% (YoY), in line with forecasts and following the 0.3% decline in the previous month, while the Markit/JMMA Japan Manufacturing Purchasing Managers Index (PMI) fell to a seasonally adjusted 46.5 in November, from 46.9 in October.
The pair is expected to find support at 82.04, and a fall through could take it to the next support level of 81.66. The pair is expected to find its first resistance at 82.68, and a rise through could take it to the next resistance level of 82.93.
Trading trends in the pair today are expected to be determined by the release of construction orders and housing starts in Japan.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
