USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.36% against the JPY and closed at 89.82. The Japanese Yen fell on speculation of aggressive policy easing by the Bank of Japan (BoJ) next week. Investors speculated that the BoJ next week would consider removing the 0.1% floor on short-term interest rates and commit to open-ended asset buying until the 2.0% inflation target is reached.
Also, yesterday Economics Minister, Akira Amari, stated that he still believes that the currency market is “in a phase of correcting from excessive Yen strength”.
In economic news, the Department Stores Association in Japan reported that nationwide department store sales retreated 1.3% annually in December, compared to a 2.2% rise recorded in November.
In the Asian session, at GMT0400, the pair is trading at 89.97, with the USD trading 0.17% higher from yesterday’s close.
The pair is expected to find support at 88.68, and a fall through could take it to the next support level of 87.38. The pair is expected to find its first resistance at 90.75, and a rise through could take it to the next resistance level of 91.52.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
