USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.08% against the JPY and closed at 103.26.
In the Asian session, at GMT0400, the pair is trading at 103.26, with the USD trading flat from yesterday’s close.
Earlier today, the Bank of Japan, in its two-day policy meeting, kept its interest rate unchanged at 0.1% and pledge to expand its monetary base by ¥60 trillion to ¥70 trillion yen per year, ahead of the sales tax increase in the nation in April, which threatens to trigger the deepest one-quarter contraction since March 2011. Additionally, the BoJ expressed optimism on capital expenditure and industrial production in the nation but at the same time downgraded its assessment of exports. However, all-in-all, the central bank stated that the economy has recovered moderately.
The pair is expected to find support at 102.99, and a fall through could take it to the next support level of 102.71. The pair is expected to find its first resistance at 103.49, and a rise through could take it to the next resistance level of 103.72.
Traders are expected to keep a tab on Japan’s machine tool orders and tertiary industry index data, scheduled for release later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
