USDJPY Movement
For the 24 hours to 23:00 GMT, the USD ended the day flat against the JPY and closed at 104.85, ahead of the release of key US employment data, due tomorrow.
In the Asian session, at GMT0400, the pair is trading at 104.90, with the USD trading slightly higher from yesterday’s close. Early morning, Japan’s Ministry of Finance reported that the nation’s foreign-exchange reserves stood at $1,266.8 billion in December, down from $1,275.4 billion registered in the previous month. A separate report showed that the coincident index in Japan edged up to a level of 110.5 in November, less than market expectations for a rise to 110.6, from previous month’s level of 110.4. Meanwhile, Japan’s leading economic index advanced more-than-expected to a reading of 110.8 in November, following a figure of 109.8 recorded in the preceding month.
The pair is expected to find support at 104.63, and a fall through could take it to the next support level of 104.35. The pair is expected to find its first resistance at 105.12, and a rise through could take it to the next resistance level of 105.34.
Amid lack of economic releases from Japan, during the later course of the day, market participants would keep an eye on global economic news for further guidance in the pair.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
