USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.63% against the JPY and closed at 99.44, as demand for the dollar increased after data showed that US manufacturing purchasing managers’ index (PMI) grew to its highest level in two years. Moreover, a separate report showed that the number of Americans filing new claims for unemployment benefits fell to a 5-1/2-year low last week.
In the Asian session, at GMT0300, the pair is trading at 99.34, with the USD trading 0.10% lower from yesterday’s close.
Data released this morning indicated that the monetary base in Japan widened 38.0% (YoY) in July, from a 36.0% rise recorded in June.
The pair is expected to find support at 98.43, and a fall through could take it to the next support level of 97.51. The pair is expected to find its first resistance at 99.98, and a rise through could take it to the next resistance level of 100.62.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
