USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.30% against the JPY and closed at 99.71.
In Japan, an official report showed that the nation’s consumer confidence index declined to a reading of 43.0 in August, defying market expectation for a rise to 44.0 and following a level of 43.6 recorded in the previous month. Another government report depicted that Japan’s eco watchers survey – outlook declined to a level of 51.2 in August from a reading of 53.6 registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 99.55, with the USD trading 0.16% lower from yesterday’s close.
Earlier in the morning, the minutes from Bank of Japan’s (BoJ) latest policy meeting indicated that the policymakers were confident on their aggressive monetary stimulus programme and urged the government to promote fiscal reforms to keep the rise in bond yield in check. Also, data showed that Japan’s tertiary industry index posted a decline of 0.4% (MoM) in July, less than analysts’ expectation for a 0.5% drop and compared to a 0.3% decline seen in the previous month.
The pair is expected to find support at 99.33, and a fall through could take it to the next support level of 99.11. The pair is expected to find its first resistance at 99.78, and a rise through could take it to the next resistance level of 100.00.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
