USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.40% against the JPY and closed at 82.15, after the ISM purchasing managers index (PMI) in the US retreated to a reading of 49.5 in November, marking the lowest level since July 2009.
Meanwhile in Japan, the Bank of Japan (BoJ) Governor, Masaaki Shirakawa stated that, the central bank is committed to ease monetary policy aggressively, provided there is no significant risk to the sustainability of economic growth including the accumulation of financial imbalances. At a financial forum in Tokyo, he stated that, “in order to deliver sustainable economic growth under price stability, central banks must have a very long time horizon”.
In the Asian session, at GMT0400, the pair is trading at 82.10, with the USD trading marginally lower from yesterday’s close, amid positive Japanese economic data.
This morning, the monetary base in Japan climbed 5.0% (YoY) in November, compared to the 10.8% surge in October. Separately, total cash earnings in Japan rose 0.2% (YoY) in October, following a revised 0.5% fall in September.
The pair is expected to find support at 81.91, and a fall through could take it to the next support level of 81.72. The pair is expected to find its first resistance at 82.38, and a rise through could take it to the next resistance level of 82.65.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
