USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.82% against the JPY and closed at 108.70 on Friday.
The Japanese Yen gained ground against the USD on Friday, after the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, stated that inflation in Japan is finally close to the central bank’s 2.0% target, thus stoking speculation that the central bank could be tilting towards an early exit from its quantitative easing.
In the Asian session, at GMT0400, the pair is trading at 108.69, with the USD trading a tad lower against the JPY from Friday’s close.
The pair is expected to find support at 108.12, and a fall through could take it to the next support level of 107.54. The pair is expected to find its first resistance at 109.43, and a rise through could take it to the next resistance level of 110.16.
Moving ahead, traders would keep a close watch on Japan’s jobless rate and retail trade data, both for December, slated to release overnight.
The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.
