USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.25% against the JPY and closed at 91.01.
Yesterday in the US, Automatic Data Processing, Inc. (ADP) reported that, private sector employment rose by 192,000 jobs in January, compared to a downwardly revised increase of 185,000 jobs recorded in December.
In the Asian session, at GMT0400, the pair is trading at 90.82, with the USD trading 0.20% lower from yesterday’s close.
Data released this morning indicated that the seasonally adjusted industrial production in Japan climbed 2.5% (MoM) in December, less than market expectations and compared to a 1.4% drop posted in the previous month. On an annual basis, labour cash earnings in Japan dropped 1.4% in December, compared to a 0.8% fall recorded in the previous month.
Separately, Hirohide Yamaguchi, the Deputy Governor of the Bank of Japan (BoJ), indicated that the central bank would pursue further monetary easing, if required.
The pair is expected to find support at 90.56, and a fall through could take it to the next support level of 90.30. The pair is expected to find its first resistance at 91.25, and a rise through could take it to the next resistance level of 91.68.
Trading trends in the pair today are expected to be determined by the release of housing starts in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
