USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.11% against the JPY and closed at 102.31.
In the Asian session, at GMT0400, the pair is trading at 102.36, with the USD trading marginally higher from yesterday’s close. Earlier today, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda told parliament that he expects Japan’s consumer inflation to approach 2% in coming years as the economy continues to expand above its potential growth rate. He additionally indicated that the central bank has “absolutely no plan” to monetise public debt via monetary policy, stressing that its aggressive stimulus is aimed solely at achieving its 2% inflation target.
On the economic front, Japan’s Statistics Bureau reported that the nation’s consumer price index rose 1.1% (YoY) in October, following a similar rate of rise registered in the preceding month. Separately, the Nomura/JMMA manufacturing PMI edged up to a reading of 55.1 in November, compared to a level of 54.2 recorded in October. Another official report indicated that industrial production in Japan rose 0.5% (MoM) in October, nowhere comparable to analysts’ estimate for a rise of 2.0%, following a 0.9% fall witnessed in the previous month. Meanwhile, the Japan’s unemployment rate for October stood at previous month’s level of 4.0%, defying market expectations for a fall to 3.9%. Also earlier today, the housing starts data in Japan accelerated 7.1% (YoY) in October, more than market expectations for a 4.3% rise and compared to a 19.4% surge in the previous month.
The pair is expected to find support at 102.04, and a fall through could take it to the next support level of 101.71. The pair is expected to find its first resistance at 102.65, and a rise through could take it to the next resistance level of 102.94.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
