USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.59% against the JPY and closed at 121.11.
In the Asian session, at GMT0400, the pair is trading at 120.68, with the USD trading 0.35% lower from yesterday’s close.
Overnight data showed that Japan’s industrial production advanced unexpectedly by 1.0% MoM in September, from a 1.2% decline in the previous month, thus reducing pressure on the BoJ to expand its stimulus programme. Investors had expected it to fall 0.5%.
The pair is expected to find support at 120.04, and a fall through could take it to the next support level of 119.40. The pair is expected to find its first resistance at 121.29, and a rise through could take it to the next resistance level of 121.91.
Moving ahead, investors will keep a close watch on Japan’s national consumer price index, unemployment rate and overall household spending data all for the month of September, scheduled to be released overnight, to gauge the strength in the nation’s economy.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
