USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.58% against the JPY and closed at 98.39.
In economic news, an official report showed that the housing starts in Japan stood at 8.8% (YoY) in August, failing to meet market expectation for a rise to 12.8% and following a 12.4% rise seen in the previous month.
In the Asian session, at GMT0300, the pair is trading at 98.28, with the USD trading 0.11% lower from yesterday’s close. Earlier today in Japan, a report revealed that the nation’s unemployment rate rose 4.1% in August, defying analysts’ expectation for the unemployment to remain unchanged at previous month’s level of 3.8%. Another report confirmed that overall household spending in the nation declined 1.6% (YoY) in August, defying analysts’ call for a 0.2% rise and compared to a 0.1% increase witness in the earlier month. In another report, the country’s labour cash earnings fell 0.6% in August after a revised fall of 0.1% recorded in the preceding month. Meanwhile, the Bank of Japan revealed in its quarterly Tankan business survey, that an index measuring nation’s business sentiment gained broadly in the third quarter of 2013.
The pair is expected to find support at 97.60, and a fall through could take it to the next support level of 96.92. The pair is expected to find its first resistance at 98.85, and a rise through could take it to the next resistance level of 99.42.
Investors are expected to keep a close watch on the yen’s performance today, with Japan’s Prime Minister, Shinzo Abe expected to announce a hike in the national sales tax and also launch an economic stimulus package.
The currency pair is trading just above its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
