USDJPY Movement
On Friday, the USD weakened 0.32% against the JPY and closed at 103.25.
Data released during the weekend indicated that the Tankan large manufacturing index in Japan improved to a level of 16.0 in Q4 2013, from a level of 12.0 reported in the preceding quarter, suggesting that the government’s stimulus policies aimed at conquering years of deflation are pointing toward an upbeat sentiment. Meanwhile, the non-manufacturing index increased to a level of 20.0 in the fourth quarter of 2013, following a reading of 14.0 reported in the Q3 2013. Additionally, the large manufacturing outlook index in Japan rose to 14.0 in the Q4 2013, compared to a level of 11.0 reported in the earlier quarter.
In the Asian session, at GMT0400, the pair is trading at 102.83, with the USD trading 0.41% lower from Friday’s close.
The pair is expected to find support at 102.33, and a fall through could take it to the next support level of 101.84. The pair is expected to find its first resistance at 103.63, and a rise through could take it to the next resistance level of 104.43.
With a light economic calendar on the domestic front today, trading trends would be determined by the global news. The BoJ’s monetary policy meeting towards the end of the week would be keenly followed by investors.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
