USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.68% against the JPY and closed at 102.37.
In economic news, Japan’s Eco Watchers index for current situation rose above expectations to a level of 45.6 in August, from a reading of 45.1 in the previous month. Additionally, the nation’s Eco Watchers index for future outlook surprisingly advanced to a level of 47.4 in August, following a reading of 47.1 in the prior month.
Separately, the Bank of Japan’s (BoJ) Deputy Governor, Hiroshi Nakaso, stated that the central bank would try to strike a balance between favourable and adverse effects of its monetary policy tool.
In the Asian session, at GMT0300, the pair is trading at 102.07, with the USD trading 0.29% lower against the JPY from yesterday’s close, reversing previous session gains.
This morning, data showed that Japan’s tertiary industry index rose 0.3% in July, after registering a revised gain of 0.7% in the previous month.
The pair is expected to find support at 101.44, and a fall through could take it to the next support level of 100.82. The pair is expected to find its first resistance at 102.64, and a rise through could take it to the next resistance level of 103.22.
Going ahead, investors will look forward to Japan’s final reading of industrial production data for July, scheduled to release next week.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
