USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.47% against the JPY and closed at 96.65.
In the Asian session, at GMT0400, the pair is trading at 96.48, with the USD trading 0.18% lower from yesterday’s close.
This morning the Bank of Japan (BoJ) Deputy Governor nominee, Kikuo Iwata stated that decisive monetary easing is needed. In his confirmation hearing to a committee of the upper house of parliament, Kikuo Iwata stressed on the importance of bolder monetary easing, indicating that the central bank can attain its 2% inflation target only by buying long-term government debt.
Moreover the minutes of the BoJ’s latest monetary policy meeting revealed that some members opined that buying longer dated Japanese Government Bonds (JGBs) is another policy option in the future, if additional monetary easing is required. The minutes also indicated that weakness in the nation’s economy appears to be abating.
On the economic front, the business survey index (BSI) of sentiment amongst large manufacturers’ in Japan climbed to a reading of -4.6 in the Q12013 compared to a reading of -10.3 recorded in the previous quarter. Meanwhile, the domestic corporate goods price index advanced 0.4% (MoM) in February, compared to a downwardly revised 0.2% rise posted last month. Separately, the seasonally adjusted monthly tertiary industry activity index dropped by 1.1% in January, following a revised 1.1% rise recorded in December.
The pair is expected to find support at 96.07, and a fall through could take it to the next support level of 95.66. The pair is expected to find its first resistance at 96.80, and a rise through could take it to the next resistance level of 97.13.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
