USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.27% against the JPY and closed at 102.43. However, gains in the Dollar were pared after two Federal Reserve members supported US central bank’s current bond buying program to boost growth.
In the Asian session, at GMT0300, the pair is trading at 102.48, with the USD trading marginally higher from yesterday’s close.
This morning, the Bank of Japan (BoJ) maintained its benchmark interest rate at 0.1% in May, in line with market expectations and retained it monetary policy steady wherein it has pledged to increase its monetary base at annual pace of ¥60-¥70 trillion.
Also, the total merchandise trade deficit in Japan widened to ¥879.9 billion in April from a revised deficit of ¥364.0 billion recorded in the previous month, while adjusted merchandise trade deficit narrowed to ¥764.4 billion in April from a revised deficit of ¥919.8 billion recorded in March.
The pair is expected to find support at 102.19, and a fall through could take it to the next support level of 101.90. The pair is expected to find its first resistance at 102.83, and a rise through could take it to the next resistance level of 103.19.
The currency pair is trading below its 20 Hr and showing convergence with its 50 Hr moving average.
