USDJPY Movement
On Friday, the USD strengthened 0.68% against the JPY and closed at 99.17.
In Japan, the annual vehicle production declined 6.2% in May, while housing starts surged 14.5% (YoY) in May, way above the market expectations of a 6.1% jump.
In the Asian session, at GMT0300, the pair is trading at 99.31, with the USD trading 0.14% higher from yesterday’s close.
This morning, the Tankan large manufacturing outlook offered a very positive outlook for the Japanese manufacturing sector in the Q2 2013. The Bank of Japan (BoJ) in its quarterly Tankan business survey indicated that the large manufacturers’ outlook rose to a reading of 10.0 in the Q2 2013, from a reading of -1.0 in the Q1 2013, and against the expected reading of 7.0.
The pair is expected to find support at 98.76, and a fall through could take it to the next support level of 98.21. The pair is expected to find its first resistance at 99.72, and a rise through could take it to the next resistance level of 100.13.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
