USDJPY Movement
For the 24 hours to 23:00 GMT on Friday, the USD strengthened 0.61% against the JPY and closed at 91.10.
On Saturday, at the World Economic Forum’s annual meeting in Davos, Japan’s Economy Minister, Akira Amari, stated that the nation’s economic policy is aimed at defeating deflation and not to weaken the Yen.
In the Asian session, at GMT0400, the pair is trading at 91.04, with the USD trading marginally lower from Friday’s close.
This morning, annual corporate service price index in Japan dropped 0.4% in December, compared to a downwardly revised 0.5% fall reported in the previous month. Additionally, Japan’s Cabinet reported this morning that nation’s real Gross Domestic Product (GDP) might grow 2.5% in fiscal year 2013-14, higher than the earlier estimate of a 1.7% rise. However, the government has lowered its real GDP growth forecast for the current year to 1.0% from the previous projection of a 2.2% growth.
The pair is expected to find support at 90.54, and a fall through could take it to the next support level of 90.04. The pair is expected to find its first resistance at 91.41, and a rise through could take it to the next resistance level of 91.77.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
