USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.10% against the JPY and closed at 93.71.
On the Japanese economic front, the leading economic index rose to a reading of 93.4 in December, following a downwardly revised reading of 92.0 in November, while the coincident economic index advanced to a reading of 92.6 in December, from a reading of 90.2 in the previous month. Also, the Japan Department Store Association reported that on an annual basis, Japan’s nationwide department store sales climbed 0.2% in January, compared to a 1.3% drop in the previous month. Additionally, the Tokyo department store sales rose 0.5% (YoY) in January, following a 1.1% drop in the previous month.
In the Asian session, at GMT0400, the pair is trading at 93.48, with the USD trading 0.25% lower from yesterday’s close. The Yen strengthened this morning amid uncertainty over the timing of the appointment of the next governor of the Bank of Japan (BoJ), with mixed messages from government officials over the future stance of the central bank on monetary easing.
Today morning, Yoshihisa Morimoto, a board member of the Bank of Japan (BoJ), stated that recent fall in the Yen would likely support exports and corporate revenues, thereby helping in moderate economic recovery. He also indicated that the central bank would continue with its ultra loose monetary easing stance as long as it is deemed necessary. Earlier, Japanese Finance Minister, Taro Aso on Tuesday indicated that he was not considering buying foreign bonds as part of efforts to ease monetary policy.
Meanwhile, data released this morning, indicated that the total merchandise trade deficit in Japan widened to ¥1,629.4 billion in January, compared to a revised ¥643.3 billion deficit posted in December.
The pair is expected to find support at 93.23, and a fall through could take it to the next support level of 92.98. The pair is expected to find its first resistance at 93.78, and a rise through could take it to the next resistance level of 94.09.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
