USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.15% against the JPY and closed at 98.49, after San Francisco Fed President, John Williams suggested that the Fed should continue with its stimulus measures for a longer time to support recovery in the US labour markets amid fears of a slow-down in the nation’s economic growth.
Meanwhile, in Japan, Bank of Japan (BoJ) Governor, Haruhiko Kuroda expressed confidence in the central bank’s loose monetary policies, adding that the BoJ would conduct necessary monetary policy “without hesitation” in order to hit its 2% inflation target in about two years. He also highlighted that growth in the Japanese economy was on track and employment and wage trends were improving.
In the Asian session, at GMT0400, the pair is trading at 98.70, with the USD trading 0.21% higher from yesterday’s close. Earlier today, the minutes from the BoJ’s latest policy meeting highlighted policymakers’ view that the Japanese economy would continue to recover at a moderate pace, with a gradual rise in the nation’s year-on-year consumer price index. The minutes also highlighted the central bank decision to continue with its quantitative and qualitative monetary easing programme, aimed at achieving the price stability target of 2%.
The pair is expected to find support at 98.32, and a fall through could take it to the next support level of 97.93. The pair is expected to find its first resistance at 98.93, and a rise through could take it to the next resistance level of 99.16.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
