USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.19% against the JPY on Friday and closed at 76.93. Demand for the greenback surged following reports that Standard & Poor’s downgraded France, a previously AAA-rated country.
In Japan, on a seasonally adjusted basis, core machinery orders jumped 14.8% (MoM) in November, from a 6.9% contraction in October. Meanwhile, on a seasonally adjusted basis, an index measuring the prices of domestic corporate goods climbed 0.1% (MoM) to 104.7 in December, from a revised flat reading in November.
In the Asian session, at GMT0400, the pair is trading at 76.83, with the USD trading 0.13% lower from Friday’s close.
The pair is expected to find support at 76.64, and a fall through could take it to the next support level of 76.44. The pair is expected to find its first resistance at 77.05, and a rise through could take it to the next resistance level of 77.27.
Trading trends in the pair today are expected to be determined by the release of Japan’s Tertiary Industry Index scheduled to be released later today.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
