USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, USD strengthened 0.07% against the JPY and closed at 79.62, on stronger-than-expected consumer sentiment data in the US.
In the US, the Thomson Reuters/University of Michigan’s consumer sentiment index rose to 79.3 in May, surpassing forecasts for a 77.8 reading.
In the Asian session, at GMT0300, the pair is trading at 79.42, with the USD trading 0.25% lower from Friday’s close.
Yen rose after corporate service price in Japan, rose 0.2% (YoY) in April following 0.2% contraction in March and against the market expectation of 0.1% fall.
According to minutes of the Bank of Japan’s April 27 policy meeting released today morning, some of the board members cautioned that the central bank’s stimulus measure of increasing financial asset buying could lead to the public notion that it is financing government spending. Additionally, the members stated that the economic activity in Japan continues to remain flat.
The pair is expected to find support at 79.27, and a fall through could take it to the next support level of 79.13. The pair is expected to find its first resistance at 79.69, and a rise through could take it to the next resistance level of 79.97.
Trading trends in the pair today are expected to be determined by the release of overall household spending, unemployment rate, retail trade data in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
