USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.61% against the JPY and closed at 96.69.
Yesterday, Japanese Prime Mister, Shinzo Abe, in his speech at the Asia-Pacific Economic Co-operation meeting, highlighted the importance of government’s structural reform in the recent upturn in the nation’s economy and stated that there is no there is no other path forward.
In economic news, Japan’s leading economic index declined from previous month’s level of 107.9 to a reading of 106.5 in August, below market expectation for a decline to 106.9. Meanwhile, the nation’s coincident index also declined to a level of 107.6 in August, at par with analysts’ consensus and compared to a reading of 107.7 seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 96.93, with the USD trading 0.25% higher from yesterday’s close. Earlier today, data showed that, on a BOP basis, Japan’s trade deficit shrank to a level of ¥885.9 billion in August, less than analysts’ call for a decline to ¥880.1 billion and compared to a deficit of ¥943.3 billion registered in the previous month. Meanwhile, Japan’s current account surplus narrowed to ¥161.5 billion in August from ¥577.3 billion the month before, according to data released by the Ministry of Finance.
The pair is expected to find support at 96.59, and a fall through could take it to the next support level of 96.24. The pair is expected to find its first resistance at 97.25, and a rise through could take it to the next resistance level of 97.57.
Traders are expected to keep a close watch on Eco watchers survey report, scheduled to be released later during the day, for further direction in the Japanese yen.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
