USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined slightly against the JPY and closed at 111.62.
In the Asian session, at GMT0300, the pair is trading at 111.64, with the USD trading a tad higher against the JPY from yesterday’s close.
Overnight data showed that, Japan’s Nikkei services PMI declined slightly to a level of 51.3 in July, compared to a reading of 51.4 in the prior month.
According to BoJ Minutesthe Bank of Japan (BoJ) meeting minutes, financial conditions in the country remain “accommodative”. The minutes also noted the “sluggish growth” in inflation since the start of fiscal 2018. However, the policymakers failed to reach an agreement on how to address soft inflation and the rising cost of its stimulus program.
The pair is expected to find support at 111.38, and a fall through could take it to the next support level of 111.12. The pair is expected to find its first resistance at 111.84, and a rise through could take it to the next resistance level of 112.04.
With no macroeconomic releases in Japan today, traders will look forward global macroeconomic news for further direction.
The currency pair is trading above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
