USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.09% against the JPY and closed at 114.70.
In the Asian session, at GMT0400, the pair is trading at 115.2, with the USD trading 0.44% higher from yesterday’s close.
Earlier today, the BoJ minutes from its October monetary policy meeting indicated that policy board members remained upbeat that the nation’s economy was expected to continue to recover moderately and the effects of sales tax hike in April 2014 would ease gradually. It further reported that Japan’s economy still faces some downside risks from the lingering economic problems in the US and Euro-zone.
In economic news, Japan’s leading index climbed to a level of 105.6 in September, higher than market expectations for a reading of 105.5 and compared to previous month’s mark of 104.4. Meanwhile, the nation’s coincident index unexpectedly dropped to 109.7, lower than market expectations for a level of 109.8.
The pair is expected to find support at 114.03, and a fall through could take it to the next support level of 112.85. The pair is expected to find its first resistance at 115.95, and a rise through could take it to the next resistance level of 116.70.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
