USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened marginally against the JPY and closed at 102.24.
Yesterday, a report from Bloomberg, highlighted the Bank of Japan (BoJ) officials’ concerns on the economic impact of a cooler-than-normal weather triggered by El Nino and indicated that policymakers are closely monitoring the risks on accounts of changes in consumer spending and economic sentiment in the nation.
In the Asian session, at GMT0300, the pair is trading at 102.18, with the USD trading 0.06% lower from yesterday’s close. Early morning, data from Japan confirmed that the domestic corporate goods price index rose 2.8% (MoM) in April, in-line with market estimates and compared to a flat reading registered in the previous month.
The pair is expected to find support at 102.03, and a fall through could take it to the next support level of 101.88. The pair is expected to find its first resistance at 102.35, and a rise through could take it to the next resistance level of 102.53.
During the later course of the day, the Japan Machine Tool Builders’ Association is expected to release the preliminary reading for machine tool orders in Japan for April. Also early Thursday, Japan’s Cabinet Office would release Japan’s GDP data for the first quarter.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
