USDJPY Movement
For the 24 hours to 23:00 GMT, the USD jumped 1.20% against the JPY and closed at 97.21.
In Japan, industrial production dropped 3.1% (MoM) in June, compared to a 1.9% rise recorded in the previous month. Additionally, capacity utilization fell 2.3% (MoM) in June, compared to a 2.3% rise in the previous month.
In the Asian session, at GMT0300, the pair is trading at 97.31, with the USD trading 0.11% higher from yesterday’s close.
The Bank of Japan meeting minutes released today revealed that the board members were of the view that the Japanese economy has started to recover moderately. The minutes also revealed that few members discussed that the government should maintain the credibility of its fiscal management to ensure the stability of interest rates.
On the economic front, the machinery orders in Japan rose 4.9% (YoY), compared to a 2.4% rise expected by markets.
The pair is expected to find support at 96.63, and a fall through could take it to the next support level of 95.95. The pair is expected to find its first resistance at 97.72, and a rise through could take it to the next resistance level of 98.13.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
