USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.15% against the JPY and closed at 80.95.
The Japanese yen made gains against the greenback on Wednesday, following a government approval of a new budget aimed at kick starting the reconstruction program in the Fukushima area. The yen was supported by an announcement of another budget, valued at $24.7 billion, aiming to support reconstruction and provide compensations to the victims of the Fukushima disaster.
In Japan, yesterday, the leading index increased to 99.8 in May, compared to a reading of 96.2 in April. The coincident index climbed to a reading of 106.0 in May, compared to a reading of 103.6 posted in April. The foreign reserves declined to $1.138 trillion at the end of June, compared to a total foreign reserve of $1.140 trillion recorded at end of May.
Additionally, this morning, the core machinery orders rose by 3.0% in May from 3.3% decline in the previous month.
In the Asian session at 3:00GMT, the pair is trading lower from yesterday’s close at 23:00 GMT, by 0.12%, at 80.85.
The first short term resistance is at 81.04, followed by 81.24. The pair is expected to find support at 80.71 and the subsequent support level at 80.58.
Trading trends in the pair today are expected to be determined by data release on money supply and trade balance in Japan.
The currency pair is trading just below its 20 Hr and its 50 Hr moving averages.
