USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened marginally against the JPY and closed at 101.92.
In economic news, the minutes from the BoJ’s 30 April policy meeting, released early Monday, showed that three of the nine board members dissented to the central bank’s projection for consumer prices to reach its 2.0% target around fiscal 2015, the middle of its earlier forecasted timeframe. However, policymakers expressed optimism on the exports-outlook of Japan and unanimously agreed to conduct money market operations in order to assist the central bank’s target of expanding the nation’s monetary base at an annual pace of about ¥60-70 trillion. Separately, the BoJ Deputy Governor, Kikuo Iwata hinted towards the possibility of tapering its ultra-easy stimulus measures, should consumer inflation in Japan surpass the central bank’s 2.0% inflation target.
In the Asian session, at GMT0300, the pair is trading at 101.96, with the USD trading slightly higher from yesterday’s close. Earlier today, data from Japan, showed that corporate service prices rose 3.4% (YoY) in April, following a 0.7% increase in March.
The pair is expected to find support at 101.87, and a fall through could take it to the next support level of 101.77. The pair is expected to find its first resistance at 102.03, and a rise through could take it to the next resistance level of 102.10.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
