USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.58% against the JPY and closed at 100.30.
In Japan, an official report showed that the machine tool orders in the nation declined 1.8% (YoY) in August, compared to a 25.9% surge registered in the previous month.
In the Asian session, at GMT0300, the pair is trading at 100.56, with the USD trading 0.26% higher from yesterday’s close.
Earlier today, on a quarterly basis, the BSI large manufacturing in Japan advanced to a reading of 15.2 in the third quarter, surpassing market expectation for a rise to a reading of 7.2 and following a level of 5.0 registered in the previous quarter. Meanwhile, the nation’s domestic corporate goods price index rose 2.4% (YoY) in August, at par with analysts’ expectation and compared to a 2.3% rise seen in the previous month.
This morning, the Bank of Japan (BoJ) board member, Koji Ishida indicated that the central bank is very likely to meet its inflation goal between October 2014 and March 2016, but also warned that the nation’s economic recovery could falter if wage rise and exports fail to grow in tandem with prices.
The pair is expected to find support at 99.82, and a fall through could take it to the next support level of 99.07. The pair is expected to find its first resistance at 100.95, and a rise through could take it to the next resistance level of 101.34.
Traders await the release of an official report on Japan’s machinery orders, which the market expects to show an improvement in the month of July.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
