USDJPY Movement
For the 24 hours to 23:00 GMT, the USD marginally weakened against the JPY and closed at 102.25.
Yesterday, the Bank of Japan (BoJ) Deputy Governor, Kikuo Iwata, highlighted the possibility for deflation risks in the Japanese economy should inflation rate stay below 1% for a prolonged period of the time. Furthermore, he eased some concerns on Japan’s economic growth by stating that the BoJ’s current stimulus programme has already taken into account any possible short-term economic impact arising from a planned sales tax rate in April.
In the Asian session, at GMT0400, the pair is trading at 102.33, with the USD trading 0.08% higher from yesterday’s close.
The pair is expected to find support at 102.08, and a fall through could take it to the next support level of 101.84. The pair is expected to find its first resistance at 102.62, and a rise through could take it to the next resistance level of 102.91.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
