USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 1.33% against the JPY and closed at 101.03.
The minutes from the Bank of Japan’s (BoJ) latest monetary policy meeting showed that most policymakers voiced concerns about the risks ahead of the June 23 Brexit vote and suggested that the central bank should take necessary measures to support liquidity. Further, it indicated that the policymakers clashed over the need to modify stimulus measures in June as they found that it was necessary to closely monitor the result of the EU referendum and its consequences on financial and economic developments. It also revealed that one of the nine board members suggested that the bank should reduce the program of purchasing Japanese government bonds while another member called to buy assets in a “flexible manner”.
In other economic news, Japan’s Nikkei services PMI edged up to a level of 50.4 in July, crawling out of the contraction territory, from a level of 49.4 recorded in the prior month.
In the Asian session, at GMT0300, the pair is trading at 101.20, with the USD trading 0.17% higher against the JPY from yesterday’s close.
The pair is expected to find support at 100.3, and a fall through could take it to the next support level of 99.39. The pair is expected to find its first resistance at 102.46, and a rise through could take it to the next resistance level of 103.71.
The currency pair is trading/showing convergence with its 20 Hr and 50 Hr moving average.
