USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.39% against the JPY and closed at 90.80.
On the economic front, Japan’s small business confidence index rose to a reading of 44.3 in January, compared to a reading of 43.8 registered in December. Separately, the Japanese government approved a record budget for the fiscal 2013 that envisages spending cuts, the first time in seven years, and a reduction in new bond issuance.
In the Asian session, at GMT0400, the pair is trading at 90.96, with the USD trading 0.18% higher from yesterday’s close.
Data released this morning indicated that the seasonally adjusted monthly retail sales in Japan rose 0.1% in December, compared to a downwardly revised 0.1% drop reported in November. On an annual basis, retail trade rose 0.4% in December, compared to a downwardly revised 1.2% growth recorded in November. Meanwhile, large retailers’ sales remained flat in December, compared to a 0.9% increase recorded in the previous month.
The pair is expected to find support at 90.51, and a fall through could take it to the next support level of 90.05. The pair is expected to find its first resistance at 91.23, and a rise through could take it to the next resistance level of 91.50.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
