USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD strengthened 1.02% against the JPY and closed at 78.37.
The Yen came under pressure, after Japan lowered the assessment for its economy, marking the first consecutive downgrade since 2009. Additionally, nation’s Cabinet Office, in its monthly report, stated that Japan’s recovery appears to be pausing due to deceleration of the world economy, with private consumption almost flat and industrial production along with exports weakening.
In Japan, industrial production fell 1.0% (MoM) in July, compared to a revised initial estimate of a 1.2% drop. Meanwhile, on a seasonally adjusted basis, capacity utilization rose 0.5% (MoM) in July, following a 2.3% drop in June.
In the Asian session, at GMT0300, the pair is trading at 78.22, with the USD trading 0.19% lower from Friday’s close.
The pair is expected to find support at 77.68, and a fall through could take it to the next support level of 77.15. The pair is expected to find its first resistance at 78.61, and a rise through could take it to the next resistance level of 79.01.
The currency pair is trading just above its 20 Hr moving average and well above its 50 Hr moving average.
