USDJPY Movement
On Friday, the USD weakened 0.44% against the JPY and closed at 100.67.
The first deputy managing director of the International Monetary Fund, David Lipton, stated that the yen’s current depreciation is not problematic if accompanied by fiscal and structural reforms Prime Minister Shinzo Abe has promised to deliver.
In economic news, vehicle production in Japan fell 6.5% annually in April, while housing starts jumped 5.80% in April. Additionally, annualised housing starts totaled to 0.94 million in April and construction orders received by the construction companies in Japan rose 2.00% in April.
In the Asian session, at GMT0300, the pair is trading at 100.62, with the USD trading marginally lower from Friday’s close.
This morning, capital spending in Japan declined 3.9% (YoY) in the Q12013, compared to a 8.7% drop reported in the Q4 2012.
The pair is expected to find support at 100.16, and a fall through could take it to the next support level of 99.69. The pair is expected to find its first resistance at 101.15, and a rise through could take it to the next resistance level of 101.68.
The currency pair is showing convergence with its 20 Hr moving average and is moving below its 50 Hr moving average.
