USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 1.24% against the JPY and closed at 88.52.
On the economic front, Japan’s all industry activity index fell 0.3% (MoM) in November, slower than the expected 0.5% fall and following a 0.2% rise recorded in the previous month. Similarly, the leading economic index slipped to a reading of 92.1 in November, higher than the preliminary estimates of a decline to 91.9 and following a reading of 92.8 in October. Meanwhile, the coincident economic index climbed to 90.2 in November, slightly higher than 90.1 seen in preliminary estimates and from a reversed reading of 90.7 recorded in October.
With the Bank of Japan decision behind, market participants will once again focus on the US fiscal and debt crisis. Traders will closely watch the upcoming vote to delay the debt ceiling for another 90 days.
In the Asian session, at GMT0400, the pair is trading at 88.50, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 87.92, and a fall through could take it to the next support level of 87.33. The pair is expected to find its first resistance at 89.53, and a rise through could take it to the next resistance level of 90.57.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
