USDJPY Movement
On Friday, the USD weakened 0.34% against the JPY and closed at 100.22.
On the economic front, Japan’s all industry activity index rose 1.1% (MoM) in May, compared to a revised 0.1% rise reported in April. Meanwhile, the final leading economic index rose to a reading of 110.7 in May, while the final coincident index rose to a reading of 106.0 for the same month.
In the Asian session, at GMT0300, the pair is trading at 99.98, with the USD trading 0.24% lower from Friday’s close. Over the weekend, Japan’s ruling party won a majority in Parliament’s Upper House, strengthening the grip of Prime Minister Shinzo Abe’s Liberal Democratic Party (LDP) that promises to revitalize Japan’s deflationary economy.
Separately this morning, Takehiro Sato, a board member of the Bank of Japan (BoJ), stated that the BoJ would not hesitate in providing additional stimulus, if unexpected risks to the economy materialise.
The pair is expected to find support at 99.52, and a fall through could take it to the next support level of 99.05. The pair is expected to find its first resistance at 100.54, and a rise through could take it to the next resistance level of 101.10.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
