USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.51% against the JPY and closed at 122.66.
Yesterday, BoJ board member, Takahide Kiuchi, indicated that the central bank’s targeted 2.0% inflation is unlikely to be achieved due to declining wholesale prices, weak consumer spending and wage concerns. He further stated that benefits from the BoJ’s monetary easing policy are diminishing and warned that a continuation of the same will adversely affect the nation’s growth prospects.
In the Asian session, at GMT0400, the pair is trading at 122.58, with the USD trading marginally lower from yesterday’s close.
Early morning data showed that labour cash earnings in Japan rose more-than-expected by 0.7% YoY in October, after recording a revised rise of 0.4% in the previous month, and against investor expectations for a growth of 0.5%. Also, the nation’s consumer confidence index rose to a level of 42.6 in November, compared to investor expectations of a rise to 41.7, and after recording a reading of 41.5 in the previous month.
The pair is expected to find support at 122.06, and a fall through could take it to the next support level of 121.54. The pair is expected to find its first resistance at 123.34, and a rise through could take it to the next resistance level of 124.09.
Going ahead, market participants will look forward to Japan’s Q3 GDP data, scheduled to be released next week.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
