USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 1.06% against the JPY and closed at 94.92.
On the economic front, Japan’s all industry activity dropped 1.4% (MoM) in January, in line with the market forecast and compared to a downwardly revised rise of 1.6% reported in December. Supermarket sales declined 5.5% (YoY) in February, following a decline of 4.7% reported in the previous month.
Haruhiko Kuroda, the newly appointed governer of the Bank of Japan (BoJ), in his inaugural press conference pledged to bring the Japanese economy out of deflation but offered few specifics. He stated that the BOJ will promote bolder monetary easing in terms of quantity and quality, an indication that the central bank will consider employing additional easing steps at its next policy meeting scheduled for April 3 and 4.
In the Asian session, at GMT0400, the pair is trading at 94.94, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 94.33, and a fall through could take it to the next support level of 93.72. The pair is expected to find its first resistance at 95.77, and a rise through could take it to the next resistance level of 96.59.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
