USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.64% against the JPY and closed at 80.93, as weaker economic data in US, Europe and China raised concerns that the global economic recovery is slowing.
Bank of Japan Governor, Masaaki Shirakawa stated that supply disruptions caused by the devastating earthquake and tsunami are easing more quickly than expected, and further expects that the economy would return to moderate growth in the second half of 2011.
In Japan, this morning, the capital spending rose by 3.0% in the first quarter of 2011, following a 3.8% increase in the previous quarter. The monetary base, on yearly basis, rose by 16.2% in May to ¥114.42 trillion following a 23.9% increase in April.
In the Asian session at 3:00GMT, the pair is trading higher from yesterday’s close at 23:00 GMT, by 0.16%, at 81.06.
The first short term resistance is at 81.50, followed by 81.94. The pair is expected to find support at 80.63 and the subsequent support level at 80.20.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
