USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.54% against the JPY and closed at 98.90, after the Standard & Poor’s ratings agency upgraded the outlook for the US credit rating to ‘Stable’ from ‘Negative’, citing the economic resilience and monetary credibility of the US.
In Japan’s economic news, consumer confidence edged up to a level of 45.7 in May. Meanwhile, Japan’s Eco watchers survey for the current economic conditions dropped to 55.7 in May and the Eco watchers survey for future economic situation fell to 56.2 in May.
In the Asian session, at GMT0300, the pair is trading at 98.36, with the USD trading 0.55% lower from yesterday’s close.
This morning, the Bank of Japan (BoJ) left its benchmark interest rate unchanged at 0.1% in June and maintained its asset purchase program. Additionally, the BoJ revised up its assessment slightly, stating that Japan’s economy has been picking up.
Moreover, the M3 money supply in Japan advanced 2.8% annually in May, while the M2+CD money supply rose 3.4% (YoY) in May. Moreover, according to the Business Survey Index (BSI), sentiment at large manufacturing industries in Japan advanced to a reading of 5.0 in the Q2 2013.
The pair is expected to find support at 97.65, and a fall through could take it to the next support level of 96.95. The pair is expected to find its first resistance at 99.19, and a rise through could take it to the next resistance level of 100.03.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
