USDJPY Movement
On Friday, the USD strengthened 0.88% against the JPY and closed at 99.04, buoyed by a strong growth in the domestic non-farm payrolls data.
In the Asian session, at GMT0400, the pair is trading at 99.01, with the USD trading slightly lower from Friday’s close. Earlier today, a report from Japan showed that the nation’s trade deficit on BOP basis narrowed to ¥874.8 billion in September, from a deficit of ¥885.9 billion registered in the previous month. Meanwhile, the Bank of Japan (BoJ) reported that bank lending in the nation rose 2.0% (YoY) in October, following a similar rate of rise witnessed in September.
The pair is expected to find support at 98.24, and a fall through could take it to the next support level of 97.47. The pair is expected to find its first resistance at 99.51, and a rise through could take it to the next resistance level of 100.01.
Later today, investors look forward to the release of a report on the eco watchers survey by the Japan Cabinet Office. Also, later today, the Ministry of economy, trade and industry of Japan is expected to release a report on the nation’s tertiary industry index, which is widely expected to rise 0.2% (MoM) in September, following a 0.7% rise seen in August.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
