USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.43% against the JPY and closed at 97.95, as the US government’s decision to shut down its offices spooked investors confidence.
Meanwhile, in Japan, Prime Minister, Shinzo Abe, stated that his government would raise the rate of sales tax from 5% to 8% from 1 April next year. He further added that he will pair the tax increase with new stimulus spending to avoid a negative impact on the growth of the economy.
In the Asian session, at GMT0300, the pair is trading at 97.76, with the USD trading 0.19% lower from yesterday’s close. Earlier today, the Bank of Japan reported that its monetary base rose 46.1% (YoY) in September, more than analysts’ expectation for a rise to 45.3% and following a 42.0% increase seen in the previous month.
The pair is expected to find support at 97.41, and a fall through could take it to the next support level of 97.06. The pair is expected to find its first resistance at 98.35, and a rise through could take it to the next resistance level of 98.93.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
