USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 2.22% against the JPY and closed at 90.55.
Yesterday, the German Chancellor Angela Merkel stated that the Japanese government’s call for monetary easing and central-bank cash that has been released to curtail Europe’s debt crisis constitute risks to the global economic recovery. In response to concerns voiced by German Chancellor, Japan’s Economy Minister, Akira Amari indicated that he intends to resolve such concerns at the ongoing World Economic Forum in Davos.
In the Asian session, at GMT0400, the pair is trading at 90.44, with the USD trading 0.12% lower from yesterday’s close.
This morning, the Japanese Consumer Price Index (CPI) declined by 0.1% (YoY) in December, compared to a 0.2% drop reported in the previous month.
Meanwhile, the minutes of the Bank of Japan’s (BoJ) latest monetary policy meeting indicated that the central bank has decided to pursue further monetary easing, citing high degree of uncertainty about the domestic economy. The minutes also indicated that few members proposed lowering the short-term interest rate to influence foreign exchange rates.
The pair is expected to find support at 89.42, and a fall through could take it to the next support level of 88.41. The pair is expected to find its first resistance at 91.08, and a rise through could take it to the next resistance level of 91.72.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
