USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.28% against the JPY and closed at 78.43.
According to a survey conducted by Eco Watchers’, on a seasonally adjusted basis, the current conditions index in Japan rose to 44.2 in July, while the outlook index fell to 44.9 in July.
In the Asian session, at GMT0300, the pair is trading at 78.47, with the USD trading 0.05% higher from yesterday’s close.
This morning, the Bank of Japan (BoJ) left its policy stance unchanged, reiterating its commitment to powerful monetary easing, but taking no further action to achieve its goal to spur a 1% increase in consumer prices. The BoJ kept its interest rate in the range of 0% to 0.1%, with the size of the asset purchase program also maintained at ¥70 trillion, as widely expected.
Additionally, machine orders in Japan rose 5.6% (MoM) in June, compared to a fall of 14.8% in May.
The pair is expected to find support at 78.28, and a fall through could take it to the next support level of 78.08. The pair is expected to find its first resistance at 78.63, and a rise through could take it to the next resistance level of 78.78.
Trading trends in the pair today are expected to be determined by the release of consumer confidence and machine tool orders data in Japan.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
