USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.10% against the JPY and closed at 120.99.
In the Asian session, at GMT0400, the pair is trading at 120.86, with the USD trading 0.11% lower from yesterday’s close.
Overnight data showed that Japan’s national consumer price index remained flat on an annual basis in September, compared to rise of 0.2% in the previous month. Further, the nation’s unemployment rate remained unchanged at 3.4% in the same month, meeting market expectations. However, Japan’s household spending unexpectedly fell by 0.4% YoY in September, compared to a rise of 2.9% in the previous month. Investors had expected it to advance 1.2%.
Early this morning, the BoJ held off on raising interest rates at its monetary policy meeting. Further, the central bank refrained from increasing its existing ¥80 trillion annual monetary stimulus programme.
In other economic news, Japan’s housing starts rose less-than-expected by 2.6% YoY in September, compared to a 8.8% growth in the previous month. Investors had expected it to advance 6.6%.
The pair is expected to find support at 120.37, and a fall through could take it to the next support level of 119.88. The pair is expected to find its first resistance at 121.27, and a rise through could take it to the next resistance level of 121.69.
Going ahead, investors will keep a close eye on Japan’s Nikkei manufacturing PMI, leading economic and coincident indices, and the BoJ’s monetary policy meeting minutes, all scheduled to be released next week.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
