USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.12% against the JPY and closed at 98.35. The Japanese Yen gained ground against its US counterpart after the Bank of Japan (BoJ) upgraded its economic outlook for next fiscal year to an annual growth rate of 1.5% and kept its interest rate unchanged at 0.1%. However, gains in the yen were kept in check after the BoJ Governor, Haruhiko Kuroda, indicated that the central bank is willing to take additional monetary easing steps to mitigate risks in achieving its 2% inflation target in a 2-year timeframe. He also admitted that three of the nine members on the BoJ panel had doubts about whether the inflation target would be achieved.
Meanwhile, on the economic front, housing starts in Japan rose 19.4% (YoY) in September, surpassing analysts’ call for a 12.2% rise and compared to an 8.8% increase witnessed in the previous month. Another official report revealed that construction orders in Japan surged by 89.8% (YoY) in September, following a 21.4% rise seen in the preceding month.
In the Asian session, at GMT0400, the pair is trading at 97.87, with the USD trading 0.49% lower from yesterday’s close.
The pair is expected to find support at 97.61, and a fall through could take it to the next support level of 97.35. The pair is expected to find its first resistance at 98.32, and a rise through could take it to the next resistance level of 98.78.
With no major economic release in Japan, traders are monitoring global economic news for furthers cues in the pair.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
