USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.27% against the JPY and closed at 104.31.
Yesterday, Fitch Ratings indicted that the Japan’s increasing current account deficit is a warning that the country needs medium-term fiscal consolidation to maintain financial stability.
In the Asian session, at GMT0400, the pair is trading at 104.35, with the USD trading tad higher from yesterday’s close.
This morning, the Japanese government raised its economic assessment and declared in its monthly report that the economy is “recovering”, for the first time in six years, on the back of robust consumer spending ahead of a planned sales tax hike in April and improvement in business investment.
On the macro front, the consumer confidence index in Japan declined to 41.3, compared to a reading of 42.5 in the previous month.
The pair is expected to find support at 104.03, and a fall through could take it to the next support level of 103.72. The pair is expected to find its first resistance at 104.77, and a rise through could take it to the next resistance level of 105.19.
Trading trends in the pair today are expected to be determined by the economic releases from the US, mainly the building permits and housing starts data along with the industrial production and Reuters/Michigan consumer sentiment index.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
