USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.18% against the JPY and closed at 99.73, as improving conditions in the US economy, as outlined by the Federal Reserve’s Beige Book, lead to speculation that reduction in Fed’s aid to the US economy may begin as early as in September.
In the Asian session, at GMT0300, the pair is trading at 99.72, with the USD trading tad lower from yesterday’s close. Earlier today, the Bank of Japan (BoJ), in its two-day policy meeting, concluded to keep its interest rate unchanged at 0.1%, at par with market expectations. However, speculation took rounds that the central bank may be forced to increase its efforts if a hike in the sales tax goes ahead in April.
The pair is expected to find support at 99.41, and a fall through could take it to the next support level of 99.11. The pair is expected to find its first resistance at 99.93, and a rise through could take it to the next resistance level of 100.15.
The currency pair is trading just above its 20 Hr and 50 Hr moving averages.
