USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.20% against the JPY and closed at 78.08.
Yesterday, Japan’s preliminary machine tool orders dropped 3.0% (YoY) in September, following a 2.7% drop in the previous month.
Separately, in the US, wholesale inventories rose by 0.5% in August, following a downwardly revised 0.6% increase in July.
In the Asian session, at GMT0300, the pair is trading at 78.03, with the USD trading 0.06% lower from yesterday’s close.
In Japan, core machine orders declined a seasonally adjusted 3.3% (MoM) in August to ¥717.3 billion, against the forecasts for a contraction of 2.3% and following a 4.6% rise in July. The minutes released today morning from the Japanese board’s September 18-19 policy meeting, indicated that members of the Bank of Japan’s (BoJ) monetary policy board were of opinion that economic conditions in the country warranted the increase of the central bank’s asset purchase plan.
The pair is expected to find support at 77.90, and a fall through could take it to the next support level of 77.77. The pair is expected to find its first resistance at 78.27, and a rise through could take it to the next resistance level of 78.50.
Trading trends in the pair today are expected to be determined by the release of the consumer confidence index in Japan.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
