USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, the USD strengthened 0.63% against the JPY and closed at 93.53.
On Friday, in its monthly report, the Bank of Japan (BoJ) indicated that the economy is likely to end further downturn and exports and industrial production will start picking up gradually in the months ahead. Moreover, industrial production grew 2.4% (MoM) in December, lower than the 2.5% increase initially estimated, while capacity utilization rose 2.9% (MoM) in December.
In the Asian session, at GMT0400, the pair is trading at 94.07, with the USD trading 0.58% higher from Friday’s close.
The Yen is trading on a weaker footing, after the Group of 20 nations refrained from criticizing Japan for recent aggressive monetary policy that led to devaluation of country’s currency. The Group of 20 nations abstained from competitive devaluations and indicated that monetary policy would be directed only at price stability and growth, echoing a similar call last week from the G7.
Moreover, Japanese Prime Minster, Shinzo Abe indicated that the Bank of Japan’s 2.0% inflation target is to keep prices stable and that the country is not manipulating currency market.
The pair is expected to find support at 92.79, and a fall through could take it to the next support level of 91.52. The pair is expected to find its first resistance at 94.78, and a rise through could take it to the next resistance level of 95.49.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
