USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.13% against the JPY and closed at 103.26, after three eminent Fed policymakers expressed their support for the central bank to slow down the pace of its stimulus measure at its December policy meeting.
In the Asian session, at GMT0400, the pair is trading at 103.28, with the USD trading tad higher from yesterday’s close. Early morning, an official report from Japan revealed that the tertiary industry index of the nation declined 0.7% (MoM) in October, defying market expectations for a 0.3% rise and compared to a 0.2% drop witnessed in the previous month. Another report showed that Japan’s consumer confidence index rose to a reading of 42.5 in November, less than analysts’ projection for a 44.2 rise and compared to a level of 41.2 registered in the preceding month.
The pair is expected to find support at 102.98, and a fall through could take it to the next support level of 102.68. The pair is expected to find its first resistance at 103.50, and a rise through could take it to the next resistance level of 103.71.
Market participants are expected to keep a close watch on the release of Japan’s machine tools orders and machinery orders data, slated to release today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
