USDJPY Movement
On Friday, the USD weakened 1.14% against the JPY and closed at 98.21, as investors were disappointed by the US GDP data.
Meanwhile, in its latest semi-annual economic and price outlook report, the Bank of Japan (BoJ) indicated that the Japanese economic weakness is abating and is expected to return to a moderate recovery path around mid-2013, amid expectations that domestic demand remains resilient due to the effects of rigorous monetary easing. It also forecasted that Japanese inflation is expected to rise to around 2% during the latter half of the coming three-year period driven by the continuous quantitative and qualitative monetary easing measures that would underpin consumer inflation expectations.
In the Asian session, at GMT0300, the pair is trading at 97.50, with the USD trading 0.73% lower from Friday’s close.
The pair is expected to find support at 96.81, and a fall through could take it to the next support level of 96.12. The pair is expected to find its first resistance at 98.73, and a rise through could take it to the next resistance level of 99.96.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
