USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened marginally against the JPY and closed at 88.58.
In its monthly economic report, the Japanese Cabinet Office stated that the government has upgraded its assessment of the economy for the first time in eight months. It also indicated that the government has vowed to “eliminate deflationary expectations and avoid further deterioration of economy with prompt and flexible economic and fiscal policy management”.
In the Asian session, at GMT0400, the pair is trading at 89.08, with the USD trading 0.57% higher from yesterday’s close.
Data released this morning indicated that Japan’s merchandise trade deficit narrowed to ¥641.5 billion in December, compared to a downwardly revised ¥954.8 billion deficit recorded last month. Moreover, the adjusted merchandise trade deficit narrowed to ¥800.7 billion in December, from a revised deficit of ¥852.1 billion.
The pair is expected to find support at 88.32, and a fall through could take it to the next support level of 87.56. The pair is expected to find its first resistance at 89.59, and a rise through could take it to the next resistance level of 90.09.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
