USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.15% against the JPY and closed at 120.04.
In the Asian session, at GMT0300, the pair is trading at 120.02, with the USD trading marginally lower from Friday’s close.
Early morning data showed that Japan’s labour cash earnings grew 0.5% YoY in August, compared to an upwardly revised reading of 0.9% in July. At the same time, real cash earnings posted its second straight gain in August, edging up 0.2% YoY, after an upwardly revised reading of 0.5% in the previous month.
On the other hand, Japan services PMI slowed down to 51.4 in September, from 53.7 in August.
The pair is expected to find support at 118.99, and a fall through could take it to the next support level of 117.96. The pair is expected to find its first resistance at 120.73, and a rise through could take it to the next resistance level of 121.45.
Market participants will keep a close watch on BoJ’s monetary policy statement, scheduled to release ahead in the week, to get further cues.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
