USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.09% against the JPY and closed at 78.34.
The Yen came under pressure after data showed that Japanese economy grew at a slower-than-expected rate in April-June period.
In the Asian session, at GMT0300, the pair is trading at 78.43, with the USD trading 0.11% higher from yesterday’s close.
This morning, the Bank of Japan, in its minutes from its July 11-12 meeting, revealed that a few board members are of the view that the central bank should not rule out any options in advance and stand ready to act, if substantial risks emerge from the European debt crisis.
Further, the bank expects that Japan’s economy would return to a moderate recovery path following firm domestic demand, and as overseas economies emerge from deceleration.
On the economic front, tertiary industry index in Japan rose 0.1% (MoM) in June, compared to the market expectation of 0.3% contraction.
The pair is expected to find support at 78.24, and a fall through could take it to the next support level of 78.05. The pair is expected to find its first resistance at 78.54, and a rise through could take it to the next resistance level of 78.65.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
