USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.14% against the JPY and closed at 78.28, as disappointing US jobless claims data added to concerns over the outlook for global economic growth, following a string of weak economic reports from the Euro-zone and China.
Yesterday, the Bank of Japan (BoJ), in its monthly report, reiterated that the nation’s recovery from last year’s earthquake has come to a “pause”, while overseas economies have “moved deeper into a deceleration phase.” Additionally, the central bank indicated that exports and industrial production have been relatively weak, while domestic demand has been resilient.
On the economic front, all industry activity in Japan declined 0.6% (MoM) in July, following a revised 0.3% rise in June.
In the Asian session, at GMT0300, the pair is trading at 78.24, with the USD trading 0.05% lower from yesterday’s close.
The pair is expected to find support at 78.04, and a fall through could take it to the next support level of 77.85. The pair is expected to find its first resistance at 78.41, and a rise through could take it to the next resistance level of 78.59.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
