USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.24% against the JPY and closed at 101.93, following Fed’s decision to slash its 2014 economic growth-forecast for the US economy.
In the Asian session, at GMT0300, the pair is trading at 101.97, with the USD trading marginally higher from yesterday’s close.
Earlier today, a BoJ Board member, Yoshihisa Morimoto, reiterated the central bank’s view for a moderate recovery in the world’s third largest economy while projecting the Japanese economy to meet its 2.0% inflation target without the need of an additional easing measure by the central bank. Furthermore, he also forecasted activities in the nation’s exports sector to rebound in the further while cautioning that there remained “both downside and upside risks” to this projection.
In economic releases, an index measuring Japan’s all industry activity fell more-than-expected 4.3% (MoM) in April, following a 1.5% rise in the previous month.
The pair is expected to find support at 101.76, and a fall through could take it to the next support level of 101.55. The pair is expected to find its first resistance at 102.28, and a rise through could take it to the next resistance level of 102.58.
Later today, Cabinet Office would release a report on its leading economic and coincident index for Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
