USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 1.15% against the JPY and closed at 79.40.
In the Japanese economic news, the Bank of Japan Monetary Policy Statement, yesterday, announced that the board voted unanimously to keep the call rate unchanged at 0.1%.
Meanwhile, the Bank of Japan lowered its gross domestic product (GDP) growth forecast for fiscal 2011 to 0.4% from 0.6% estimated earlier.
This morning, Japan’s Chief Cabinet Secretary, Yukio Edano has stated that rapid foreign exchange moves are not “desirable” and that officials are closely watching the market.
In the Asian session at 3:00GMT, the pair is trading marginally higher from yesterday’s close at 23:00 GMT, at 79.42.
The first short term resistance is at 80.24, followed by 81.06. The pair is expected to find support at 78.55 and the subsequent support level at 77.68.
Trading trends in the pair today are expected to be determined by release of data on industrial production in Japan.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.
