USDJPY Movement
On Friday, the USD strengthened 0.17% against the JPY and closed at 97.42. The Japanese Yen came under pressure, after the Bank of Japan (BoJ) hinted for an additional stimulus measure, next year, if international risk hampered growth in the domestic economy.
The BoJ Governor, Haruhiko Kuroda, after the conclusion of the central bank’s two day monetary policy, in which it kept its interest rate unchanged at 0.1%, highlighted the risk to the domestic markets due to a deadlock in the US budget talks. Mr Kuroda also mentioned that he saw no need for the central bank to ease its policy further, however he also stated that the BoJ was ready to top up its existing massive stimulus if the recovery in the world’s third-largest economy was threatened.
In the Asian session, at GMT0300, the pair is trading at 97.18, with the USD trading 0.25% lower from Friday’s close.
The pair is expected to find support at 96.92, and a fall through could take it to the next support level of 96.65. The pair is expected to find its first resistance at 97.47, and a rise through could take it to the next resistance level of 97.76.
Investors are awaiting the BoJ’s monthly report on its economic survey and a report on the nation’s leading economic and coincident index.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
