USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.75% against the JPY and closed at 98.24. The Japanese Yen gave up ground after the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, stated that the policymakers would continue to do everything they can to fight the deflation in the economy. He also added that the central bank’s loose monetary policies are having an “encouraging” effect on the economy’s recovery and that “by continuing to pursue we are convinced that we will definitely overcome deflation.”
In the Asian session, at GMT0300, the pair is trading at 98.51, with the USD trading 0.28% higher from yesterday’s close. Earlier today, a report from Japan, showed that the nation’s domestic corporate goods price index rose 0.3% (MoM) in September, from a similar reading registered in the previous month. Another report revealed that Japan’s money supply M2+CD advanced to 3.8% (YoY) in September, more than market expectation for the money supply to remain unchanged at previous month’s level of 3.7%.
The pair is expected to find support at 97.90, and a fall through could take it to the next support level of 97.28. The pair is expected to find its first resistance at 98.85, and a rise through could take it to the next resistance level of 99.18.
Amid lack of economic releases in Japan, traders are monitoring global economic news for further guidance in the pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
