USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.79% against the JPY and closed at 113.79.
In the Asian session, at GMT0400, the pair is trading at 113.55, with the USD trading 0.22% lower from yesterday’s close.
Early morning data indicated that Japan’s manufacturing PMI rose to a level of 52.4 in October, compared to a reading of 52.8 registered in the previous month.
Separately, the Japanese Prime Minister, Shinzo Abe mentioned that the nation is not yet out of deflation and continues to remain in deflationary state.
The pair is expected to find support at 112.67, and a fall through could take it to the next support level of 111.79. The pair is expected to find its first resistance at 114.32, and a rise through could take it to the next resistance level of 115.10.
Meanwhile, investors await the BoJ Governor, Haruhiko Kuroda’s first speech post the BoJ’s surprising move to increase its stimulus, scheduled in the early hours tomorrow.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
