USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.22% against the JPY and closed at 79.44, after the release of weak US economic data.
In the US, retail sales slipped for the second consecutive month in May. Separately, the producer price index in the US dropped 1.0% in May, marking the largest drop since July 2009.
Meanwhile, Bank of Japan (BoJ) Governor, Masaaki Shirakawa, stated that the bank is aware that yen rises could hurt Japanese business sentiment and the bank would carefully assess the impact of Europe’s debt crisis and yen rises on the economy.
In the Asian session, at GMT0300, the pair is trading at 79.40, with the USD trading 0.05% lower from yesterday’s close.
The pair is expected to find support at 79.21, and a fall through could take it to the next support level of 79.03. The pair is expected to find its first resistance at 79.66, and a rise through could take it to the next resistance level of 79.93.
Trading trends in the pair today are expected to be determined by the release of industrial production and capacity utilization in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
