USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.11% against the JPY and closed at 121.24.
In the Asian session, at GMT0400, the pair is trading at 121.29, with the USD trading marginally higher from yesterday’s close.
Early this morning, forecasts released by the Japanese government indicated that the nation’s economy is likely to grow at 1.7% in 2016, boosted by recovering consumer spending and solid capital investment. However, it expects growth in the current fiscal at 1.2%, a downgrade from its earlier estimate of 1.5%. Further, the government also stated that inflation rate would rise 1.2% in fiscal 2016, still below the BoJ’s target of 2.0%, due to declining oil prices.
The pair is expected to find support at 120.91, and a fall through could take it to the next support level of 120.54. The pair is expected to find its first resistance at 121.59, and a rise through could take it to the next resistance level of 121.90.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
