USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.16% against the JPY and closed at 93.44.
Yesterday, the Bank of Japan (BoJ) policy board member, Takehiro Sato stated that, the developments in exchange rate impact prices substantially, but pursuing a 2.0% inflation target solely through weaker Yen is not a balanced option. He suggested that, an increase in prices should be accompanied by an increase in income. He further opined that, it is vital to seek a recovery in wages while aiming the 2.0% price stability.
In the Asian session, at GMT0400, the pair is trading at 93.46, with the USD trading marginally higher from yesterday’s close. The Yen gained strength as machinery orders in Japan rose 2.8% (MoM) to ¥752.9 billion in December, following a 3.9% growth recorded in the previous month. Market had expected the machinery orders to drop 0.8% in December.
The pair is expected to find support at 93.13, and a fall through could take it to the next support level of 92.79. The pair is expected to find its first resistance at 93.93, and a rise through could take it to the next resistance level of 94.40.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
