USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.22% against the JPY and closed at 111.20.
On the macro front, Japan’s small business confidence index dropped more-than-anticipated to a level of 48.6 in April, compared to market expectations of a fall to a level of 49.4. The index had registered a level of 50.5 in the previous month.
In the Asian session, at GMT0300, the pair is trading at 111.26, with the USD trading marginally higher against the JPY from yesterday’s close.
Earlier today, the Bank of Japan (BoJ), in its latest monetary policy meeting, opted to leave the benchmark interest rate steady at -0.1% and kept the yield target for 10-year Japanese government bonds around 0%.
In its quarterly economic outlook report, the central bank offered a more upbeat outlook on the economy, raising Japan’s GDP forecast for the 2017-18 fiscal year to 1.6%, from the 1.5% projected in January, amid optimism that a pick-up in overseas demand will help sustain an export-driven economic recovery. However, the BoJ lowered its inflation forecast to 1.4% from 1.5% for the same period.
The pair is expected to find support at 110.82, and a fall through could take it to the next support level of 110.37. The pair is expected to find its first resistance at 111.74, and a rise through could take it to the next resistance level of 112.21.
Moving ahead, Japan’s jobless rate, consumer price inflation, retail trade, large retailers’ sales and flash industrial production data, all for March, set to release overnight, will pique investor attention.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
