USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.07% against the JPY and closed at 113.81.
In the Asian session, at GMT0400, the pair is trading at 113.54, with the USD trading 0.23% lower from yesterday’s close.
Early this morning, the Bank of Japan (BoJ), in a widely expected move, held benchmark interest rate steady at -0.1% and maintained its pledge to increase base money at an annual pace of ¥80 trillion at the conclusion of its two-day monetary policy meeting. In a statement accompanying the decision, the central bank indicated that Japan’s economy continues to recover moderately, although exports and production have been sluggish. Further, the central bank reiterated that it will introduce additional easing measures, if necessary.
In other economic news, Japan’s final industrial production rose by 3.7% MoM in January, in line with preliminary estimates. Further, the nation’s tertiary industry index rebounded more-than-expected by 1.5% MoM in January, its first increase in three months, compared to a fall of 0.6% in the previous month. Markets were expecting the index to advance 0.3%.
The pair is expected to find support at 113.22, and a fall through could take it to the next support level of 112.89. The pair is expected to find its first resistance at 114.01, and a rise through could take it to the next resistance level of 114.48.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
