USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.96% against the JPY and closed at 98.20, as the Fed policymakers, in its September policy meeting, refrained from tapering the size of its $85 billion monthly asset-purchase programme.
Meanwhile, in Japan, official data showed that the nation’s merchandised trade balance posted a deficit of ¥960.3 billion, less than analysts’ call for a deficit of ¥1,100.8 billion and following previous month’s revised deficit of ¥1,027.9 billion.
In the Asian session, at GMT0300, the pair is trading at 98.38, with the USD trading 0.18% higher from yesterday’s close. Earlier today, the Bank of Japan (BoJ) Board Member, Takahide Kiuchi, in his speech, warned about the downside risks to the Japanese economy due to heightening uncertainty regarding overseas economies.
The pair is expected to find support at 97.67, and a fall through could take it to the next support level of 96.95. The pair is expected to find its first resistance at 99.19, and a rise through could take it to the next resistance level of 99.99.
Investors await the Bank of Japan (BoJ) Governor, Haruhiko Kuroda’s speech, commencing later during the day in Tokyo. Traders also await report of Japan’s industry activity index, leading economic index and coincident index, slated later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
