USDJPY Movement
On Friday, the USD strengthened 0.13% against the JPY and closed at 102.57, as traders cheered the latest batch of strong employment data from the US economy.
In economic news, Japan’s leading economic index declined by 0.5 point to 106.6 while its coincident indicator decreased by 3.4 points to 111.1 in April.
During the weekend, the BoJ Governor, Haruhiko Kuroda spoke in favour of the central bank’s ultra-easy stimulus measures and stated that it was having the desired effect in boosting growth and ending deflation in the world’s third largest economy. However, at the same time, he also acknowledged that it would take more than two-year time frame for the nation to achieve its 2.0% inflation target.
In the Asian session, at GMT0300, the pair is trading at 102.52, with the USD trading slightly lower from Friday’s close.
Earlier today, data showed that, Japan’s economy grew an annualised pace of 6.7% in the first quarter of 2014 while trade deficit in the nation stood at ¥780.4 billion, its biggest trade deficit for the month of April.
The pair is expected to find support at 102.20, and a fall through could take it to the next support level of 101.88. The pair is expected to find its first resistance at 102.75, and a rise through could take it to the next resistance level of 102.98.
Traders keenly await Japan’s consumer confidence index and Eco Watchers survey on the current economic condition and the outlook of Japanese economy, slated for release later today.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
