USDJPY Movement
For the 24 hours to 23:00 GMT, the USD declined 0.48% against the JPY and closed at 110.25.
In the Asian session, at GMT0300, the pair is trading at 110.04, with the USD trading 0.19% lower against the JPY from yesterday’s close.
The minutes of the Bank of Japan’s March monetary policy meeting revealed that members saw no immediate need to expand an already massive stimulus programme and warned of heightening risks to Japan’s recovery. Additionally, the officials cautioned that the central bank’s prolonged ultra-loose monetary policy could impact regional banks’ profits.
Overnight data showed that Japan’s Nikkei services PMI dropped to a level of 51.8 in April, following a reading of 52.0 in the prior month.
The pair is expected to find support at 109.72, and a fall through could take it to the next support level of 109.41. The pair is expected to find its first resistance at 110.60, and a rise through could take it to the next resistance level of 111.17.
In absence of key economic releases in Japan today, investor sentiment would be determined by global macroeconomic events.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
