USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.42% against the JPY and closed at 79.15.
In testimony to the US Senate, Federal Reserve Chairman, Ben Bernanke refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery, if necessary.
In the Asian session, at GMT0300, the pair is trading at 79.08, with the USD trading 0.09% lower from yesterday’s close.
This morning, Bank of Japan (BoJ), in its minutes, stated that the Japanese economy is picking up as domestic demand remains firm, however the bank added that Japanese economy continues to face the challenge of overcoming deflation.
The pair is expected to find support at 78.90, and a fall through could take it to the next support level of 78.73. The pair is expected to find its first resistance at 79.21, and a rise through could take it to the next resistance level of 79.35.
Trading trends in the pair today are expected to be determined by the release of machine tool orders in Japan.
The currency pair is trading just above its 20 Hr and well above its 50 Hr moving average.
