USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.62% against the JPY and closed at 79.49. Yesterday, The International Monetary Fund urged the US policy-makers to quickly reach an agreement on a permanent fix to avoid automatic tax hikes and spending cuts early next year, citing a stop-gap solution could be harmful to the global economy.
Meanwhile, Standard & Poor’s stated that it foresees a 15.0% probability of the US to go over the fiscal cliff next year. However, it expects policymakers to probably compromise in time to avoid that outcome.
On the economic front, Japan’s Eco Watchers’ survey indicated that the current economic situation declined to a reading 39.0 in October, from 41.2 in September. Meanwhile, the outlook index dropped to 41.7 in October, from 43.5 in September.
In the Asian session, at GMT0400, the pair is trading at 79.54, with the USD trading marginally higher from yesterday’s close.
This morning in Japan, the M2 money stock was up 2.3% (YoY) in October standing at ¥818.3 trillion.
The pair is expected to find support at 79.25, and a fall through could take it to the next support level of 78.96. The pair is expected to find its first resistance at 79.90, and a rise through could take it to the next resistance level of 80.27.
The currency pair is trading below its 20 Hr and 50 Hr moving average.
