USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.56% against the JPY and closed at 98.74, as policymakers’ support for Fed’s stimulus decision, spooked investors confidence.
The New York Fed President, William C. Dudley, in his speech at New York, backed Fed’s decision to keep its monthly asset purchase programme unchanged at $85 billion and stated that policy makers must “forcefully” push against economic headwinds. Separately, the Bank of Atlanta President, Dennis Lockhart, also supported Fed’s stimulus decision by stating that the economy is too weak for the central bank to pull back its bond-buying program.
In the Asian session, at GMT0300, the pair is trading at 98.79, with the USD trading slightly higher from yesterday’s close.
The pair is expected to find support at 98.56, and a fall through could take it to the next support level of 98.34. The pair is expected to find its first resistance at 99.10, and a rise through could take it to the next resistance level of 99.40.
Amid lack of major economic releases in Japan, investors are expected to keep a close watch on global economic news for further direction in the pair.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
