USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened marginally against the JPY and closed at 99.16, as investors cashed in their recent profits following Friday’s upbeat US non-farm payroll data.
Meanwhile in Japan, the Cabinet Office reported that the Eco watchers survey for the future outlook rose to a reading of 54.5 in October, from a level of 54.2 recorded in the preceding month. However, Eco watchers’ survey for the current situation in the nation edged lower to a level of 51.8 in October, defying market expectations for a rise to 54.2 and compared to the previous month’s reading of 52.8.
In the Asian session, at GMT0400, the pair is trading at 99.49, with the USD trading 0.33% higher from yesterday’s close. Early morning, a report from Japan revealed that the nation’s tertiary industry index unexpectedly fell 0.2% (MoM) in September, against market expectations of a 0.2% rise and compared to a 0.6% rise witnessed in the August.
The pair is expected to find support at 99.07, and a fall through could take it to the next support level of 98.64. The pair is expected to find its first resistance at 99.76, and a rise through could take it to the next resistance level of 100.03.
Later today, the Cabinet Office of Japan is scheduled to report the reading of its consumer confidence index for October, ahead of Japan Machine Tool Builders Association’s report.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
