USDJPY Movement
For the 24 hours to 23:00 GMT, the USD marginally strengthened against the JPY and closed at 101.94.
Yesterday, during his testimony before the Upper House Financial Affairs Committee, BoJ Governor, Haruhiko Kuroda affirmed that the central bank’s asset-purchase programme is a part of its quantitative easing and is not intended to finance government debt. Furthermore, he indicated that the Japanese economy has currently reached only the halfway in its path towards achieving the BoJ’s 2.0% inflation target even as it is making steady progress to meet this goal. Separately, data showed that, Japan’s leading economic index declined to a level of 106.5 in April, its lowest reading since March 2013, while its coincident index stood pat at a reading of 111.1 in April.
In the Asian session, at GMT0300, the pair is trading at 101.88, with the USD trading slightly lower from yesterday’s close.
The pair is expected to find support at 101.74, and a fall through could take it to the next support level of 101.59. The pair is expected to find its first resistance at 102.02, and a rise through could take it to the next resistance level of 102.16.
During the later course of the day, Haruhiko Kuroda is expected to speak about the central bank’s monetary policies at a press conference in Tokyo.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
