USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.45% against the JPY and closed at 123.22.
In the Asian session, at GMT0400, the pair is trading at 123.27, with the USD trading marginally higher from Friday’s close.
Early this morning, the BoJ Governor, Haruhiko Kuroda, stated that the central bank’s quantitative easing programme is not causing financial imbalances in the economy and that the central bank plans to continue with its efforts to ensure a stable financial system in Japan.
In other economic news, Japan’s flash coincident index rose to a level of 114.3 in October, compared to investor expectations of rise to a level of 114.1, and after registering a reading of 112.3 in the previous month. Also, the nation’s preliminary leading index edged up to a level of 102.9 during the same month, in line with market expectations and after recording a reading of 101.6 in September.
The pair is expected to find support at 122.70, and a fall through could take it to the next support level of 122.12. The pair is expected to find its first resistance at 123.62, and a rise through could take it to the next resistance level of 123.97.
Going ahead, investors will concentrate on Japan’s final Q3 GDP data, scheduled to be released overnight, for further cues.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
