USDJPY Movement
On Friday, the USD strengthened 0.16% against the JPY and closed at 102.47.
In the Asian session, at GMT0400, the pair is trading at 102.35, with the USD trading 0.11% lower from Friday’s close. Early morning, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, in a speech to business leaders in Nagoya, highlighted the impact of overseas factors on Japan’s economy and stated that these factors were key risks to meeting the central bank’s 2% inflation target. He also mentioned that the BoJ is “ready to adjust monetary policy without hesitation if upside or downside risks materialize.”
On the economic front, Japan’s Ministry of Finance reported that capital spending in the nation rose 1.5% in the third quarter, less than market expectations for a 3.1% rise and compared to previous month’s level of 0.0%.
The pair is expected to find support at 102.11, and a fall through could take it to the next support level of 101.86. The pair is expected to find its first resistance at 102.60, and a rise through could take it to the next resistance level of 102.85.
Later today, the BoJ is expected to release a report on Japan’s monetary base.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
