USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.73% against the JPY and closed at 82.92, after the US Federal Reserve stated that unemployment was improving, while strong US retail sales data further supported the dollar.
Moreover, the Federal Reserve separately announced that 15 out of the country’s 19 banks passed recent stress tests, which further provided strength to the Dollar.
Initially, the Yen came under pressure after Bank of Japan Governor, Masaaki Shirakawa indicated the central bank would keep using monetary policy as a tool to tackle deflation.
In the Asian session, at GMT0400, the pair is trading at 83.16, with the USD trading 0.28% higher from yesterday’s close.
In economic news, on a sequential basis, the Business Survey Index of sentiment at large manufacturers’ in Japan has dropped to a reading of -7.3 in the first quarter of 2012, following a reading of -6.1 recorded in the fourth quarter of 2011. Additionally, industrial production in Japan fell 1.3% (YoY) in January.
The pair is expected to find support at 82.35, and a fall through could take it to the next support level of 81.54. The pair is expected to find its first resistance at 83.59, and a rise through could take it to the next resistance level of 84.02.
Trading trends in the pair today are expected to be determined by the release of machine tool orders in Japan.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
