USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.21% against the JPY and closed at 122.92.
In the Asian session, at GMT0400, the pair is trading at 123.02, with the USD trading marginally higher from yesterday’s close.
Overnight data showed that Japan’s monetary base advanced 32.5% YoY in November, after registering a similar rise in the previous month.
Early this morning, the BoJ Deputy Governor, Kikuo Iwata, warned that a further slowdown in China and other emerging economies posed the biggest risk to Japan’s economic outlook and is likely to put a dampener on Japan’s bid to achieve 2.0% inflation target in the next fiscal year. He further mentioned that the central bank will not hesitate to ease monetary policy in case such a scenario plays out.
The pair is expected to find support at 122.77, and a fall through could take it to the next support level of 122.53. The pair is expected to find its first resistance at 123.23, and a rise through could take it to the next resistance level of 123.45.
Moving ahead, investors will look forward to Japan’s Markit services PMI data for November, scheduled to be released tomorrow morning.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.
