USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.04% against the JPY and closed at 79.05.
In Japan, the leading index fell to a reading of 95.6 in April, the lowest reading since January, while the coincident index dropped to a reading of 96.9 in April, compared to a reading of 97.3 in March.
In the Asian session, at GMT0300, the pair is trading at 78.83, with the USD trading 0.29% lower from yesterday’s close, as market awaits the results of a Federal Reserve monetary policy meeting concluding later today.
Data released this morning showed that, Japanese merchandise trade deficit rose to ¥907.3 billion in May, compared to a deficit of ¥522.0 billion in April.
Minutes of May 22-23 board meeting released today morning indicated that members of the Bank of Japan’s Monetary Policy Committee expects the Japanese economy to return to a modest recovery in the coming months.
The pair is expected to find support at 78.71, and a fall through could take it to the next support level of 78.59. The pair is expected to find its first resistance at 79.03, and a rise through could take it to the next resistance level of 79.24.
The yen is expected to take cues by the release of all industry activity index and BoJ Governor, Masaaki Shirakawa speech.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
