USDJPY Movement
On Friday, the USD strengthened 0.43% against the JPY and closed at 98.76, buoyed by strong domestic ISM manufacturing PMI data and amid speculation that a strong recovery in the US labour market might lead the Fed to scale back its asset purchase programme sooner than expected.
In economic news, a report showed that vehicle sales in Japan surged 17.3% (YoY) in October, following a 6.4% drop witnessed in the previous month.
In the Asian session, at GMT0400, the pair is trading at 98.77, with the USD trading tad higher from Friday’s close.
The pair is expected to find support at 98.10, and a fall through could take it to the next support level of 97.42. The pair is expected to find its first resistance at 99.15, and a rise through could take it to the next resistance level of 99.53.
As Japanese markets are closed for a Culture Day holiday, market participants are expected to keep a close tab on global economic news for further guidance in the pair.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
