USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, the USD strengthened 0.41% against the JPY and closed at 82.48.
In Japan’s economic news, housing starts increased 25.2% (YoY) in October, accelerating from 15.5% rise in September. Annualized housing starts increased to 978,000 from 866,000 in September, against the forecast to fall to 852,000. Separately, the Japanese government approved a ¥880 billion ($10.7 billion) economic stimulus plan for the nation, the second package in a little more than a month.
On Friday, the Federal Reserve (Fed) Board Governor, Jeremy Stein, stated that the central bank should continue its monetary easing stance to boost economic growth until the US employment outlook gets considerably better. He also said that the Fed’s strategy of buying mortgage-backed securities was particularly effective in helping the housing finance sector.
Separately, the Treasury Secretary Timothy Geithner, on Sunday, forecasted that a deal would be reached with Republican leaders on avoiding the so-called fiscal cliff.
In the Asian session, at GMT0400, the pair is trading at 82.40, with the USD trading marginally lower from Friday’s close.
In Japan, this morning, capital expenditures rose by 2.2% (YoY) in the Q3 FY2012, lower than the 7.7% increase recorded in the Q2 FY2012.
The pair is expected to find support at 82.04, and a fall through could take it to the next support level of 81.66. The pair is expected to find its first resistance at 82.68, and a rise through could take it to the next resistance level of 82.93.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
