USDJPY Movement
On Friday, the USD strengthened 0.30% against the JPY and closed at 102.35.
In the Asian session, at GMT0400, the pair is trading at 102.44, with the USD trading 0.09% higher from Friday’s close, as investors speculated that the new Fed Chairman Janet Yellen’s testimony to US lawmakers tomorrow will see a continuation of the central bank’s policy of reduction in stimulus.
Earlier today, in Japan, the Bank of Japan (BoJ) reported that bank lending rose 2.3% (YoY) in January, similar to previous month’s pace of rise. Meanwhile, the Cabinet Office reported that its index on the nation’s consumer confidence declined to a reading of 40.5 in January, from previous month’s level of 41.3.
The pair is expected to find support at 101.69, and a fall through could take it to the next support level of 100.95. The pair is expected to find its first resistance at 102.92, and a rise through could take it to the next resistance level of 103.41.
Later today, traders would eye the outcome of Eco watchers survey on the current and economic outlook of the Japanese economy.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
