USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.02% against the JPY and closed at 103.58, after stronger-than-expected retail sales data in the US continued to drive tapering expectations in the nation.
In the Asian session, at GMT0400, the pair is trading at 103.82, with the USD trading 0.23% higher from yesterday’s close.
Early morning, the Japanese Finance Minister, Taro Aso stated that the nation has agreed to increase bilateral currency swaps with some Southeast Asian nations ahead of its weekend summit meeting with leaders from the Association of Southeast Asian Nations in Tokyo.
In economic news, the industrial production climbed 1.0% in October on a monthly basis, marking a second straight month of gains, compared with an initial reading of a 0.5% rise and following a 1.3% increase in September. Meanwhile, the capacity utilisation index rose 1.2% percent in October to 99.6.
The pair is expected to find support at 102.92, and a fall through could take it to the next support level of 102.03. The pair is expected to find its first resistance at 104.30, and a rise through could take it to the next resistance level of 104.78.
Market participants are expected to a keep a close tab on the Bank of Japan’s interest rate decision, due next week.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
