USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.1% against the JPY and closed at 114.06.
Yesterday, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, reiterated the central bank’s pledge to keep Japanese government bond yields fixed near zero until inflation rises above its 2.0% target in a sustainable manner.
On the data front, Japan’s Eco-Watchers Survey for the current situation rose more-than-anticipated to a level of 50.0 in June, notching its highest level in 6 months and compared to market expectations of a rise to a level of 49.0. In the previous month, the index had registered a reading of 48.6. Moreover, the nation’s Eco-Watchers Survey for the future outlook climbed more-than-expected to a level of 50.5 in June, following a reading of 49.6 in the prior month.
In the Asian session, at GMT0300, the pair is trading at 114.20, with the USD trading 0.12% higher against the JPY from yesterday’s close.
The pair is expected to find support at 114.03, and a fall through could take it to the next support level of 113.85. The pair is expected to find its first resistance at 114.34, and a rise through could take it to the next resistance level of 114.47.
Looking ahead, traders will keep a close watch on Japan’s flash machine tool orders for June, slated to release in a while.
The currency pair is showing convergence with its 20 Hr moving average and trading above its 50 Hr moving average.
