USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 3.84% against the JPY and closed at 96.43. The Yen plummeted after the Bank of Japan’s new Governor, Haruhiko Kuroda lived up to his promise of embarking on aggressive monetary easing, that far exceeded expectations.
Japan’s central bank, under the leadership of Governor Haruhiko Kuroda, stated that it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases. Moreover, the benchmark interest rate was maintained at the previous levels of 0-0.1%.
In the Asian session, at GMT0300, the pair is trading at 96.91, with the USD trading 0.50% higher from yesterday’s close.
This morning, official reserve assets in Japan dropped to $1,254.4 billion as on 31 March 2013 compared to $1,258.8 billion reserves recorded as on 28 February 2013.
The pair is expected to find support at 94.08, and a fall through could take it to the next support level of 91.24. The pair is expected to find its first resistance at 98.44, and a rise through could take it to the next resistance level of 99.97.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
