USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.60% against the JPY and closed at 89.64.
In economic news, convenience store sales in Japan fell 2.0% (YoY) in December, slower than the 2.5% decline recorded in the previous month. Meanwhile, final machine tool orders dropped 27.5% (YoY) in December, compared to a similar rate of drop recorded in the previous month.
In the Asian session, at GMT0400, the pair is trading at 89.13, with the USD trading 0.57% lower from yesterday’s close.
This morning, the Bank of Japan (BoJ) boosted its inflation target and committed to open-ended asset purchases in an effort to rid Japan of deflationary pressures.
The central bank raised its inflation target to 2%, in a major shift in its policy stance, and indicated that it would continue its asset purchases on an “open-ended” basis to further expand its monetary stimulus.
The pair is expected to find support at 88.63, and a fall through could take it to the next support level of 88.13. The pair is expected to find its first resistance at 89.89, and a rise through could take it to the next resistance level of 90.66.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving average.
