USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, the USD ended flat against the JPY and closed at 79.49.
On the economic front, the seasonally adjusted consumer confidence index in Japan declined to a reading of 39.7 in October, compared to a reading of 40.1 in September.
In the Asian session, at GMT0400, the pair is trading at 79.47, with the USD trading marginally lower from Friday’s close.
Data released today morning indicated that Japan’s gross domestic product (GDP) contracted 0.9% (QoQ) in the Q3 FY2012, from a revised 0.2% rise in the Q2 FY2012. Meanwhile, on a seasonally adjusted basis, tertiary industrial activity increased 0.3% (MoM) in September, compared to the revised 0.3% increase in August. Meanwhile, the prices of domestic corporate goods fell 0.3% (MoM) in October, following the downwardly revised 0.2% increase in September.
Meanwhile, the Bank of Japan Governor, Masaaki Shirakawa stated that the central bank would continue to pursue powerful monetary easing, taking into account the risk that yen rises may impact Japan’s economy.
The pair is expected to find support at 79.18, and a fall through could take it to the next support level of 78.88. The pair is expected to find its first resistance at 79.67, and a rise through could take it to the next resistance level of 79.86.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
