USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened marginally against the JPY and closed at 98.58, as investors’ confidence in the US Dollar was spooked after the Fitch ratings kept the nation’s ‘AAA’ credit grade on rating watch negative, expressing concerns over the looming deadline for the budget deal.
Meanwhile, in Japan, a report showed that industrial production declined 0.9% (MoM) in August, compared to a 3.4% rise registered in the month of July. Also the nation’s capacity utilisation fell 2.1% (MoM) in August, following a 3.7% surge witnessed in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 98.55, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 98.12, and a fall through could take it to the next support level of 97.69. 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 99.15.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
