USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.56% against the JPY and closed at 78.78, after reports revealed that the US retail sales rose more-than-expected in July, dampening speculation that the Federal Reserve may ease policy and weaken the greenback further.
A separate report showed that US producer prices rose at their fastest pace in five months in July, climbing 0.3% (MoM), after a 0.1% increase the previous month.
Earlier, in the day, the Yen had came under pressure after the minutes of the Bank of Japan’s August meeting indicated that policymakers have not ruled out further stimulus measures to bolster growth.
In the Asian session, at GMT0300, the pair is trading at 78.80, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 78.49, and a fall through could take it to the next support level of 78.18. The pair is expected to find its first resistance at 79.02, and a rise through could take it to the next resistance level of 79.24.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
