USDJPY Movement
For the 24 hours to 23:00 GMT, the USD rose 0.15% against the JPY and closed at 111.81.
Yesterday, the OECD, in its economic outlook report, forecasted that Japanese economy will grow 1.0% next year before slowing to a 0.8% growth in 2018. Moreover, it also suggested that the Bank of Japan should continue monetary easing, until inflation is stable above the 2.0% target, while taking account of costs and risks in terms of possible financial risks arising out from its policies.
In the Asian session, at GMT0400, the pair is trading at 112.07, with the USD trading 0.23% higher against the JPY from yesterday’s close.
Overnight data indicated that, Japan’s unemployment rate remained steady at 3.0% in October, in line with market expectations.
The pair is expected to find support at 111.5, and a fall through could take it to the next support level of 110.94. The pair is expected to find its first resistance at 112.71, and a rise through could take it to the next resistance level of 113.36.
Investors would keep a close watch on Japan’s flash industrial production for October, due to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below 50 Hr moving average.
