USDJPY Movement
On Friday, the USD strengthened 0.52% against the JPY and closed at 120.73.
In the Asian session, at GMT0400, the pair is trading at 121.06, with the USD trading 0.27% higher from Friday’s close.
Early this morning, the BoJ Deputy Governor, Hiroshi Nakaso mentioned that additional monetary stimulus was not required at present, unless medium to long term inflation expectations were impacted and it was difficult to achieve 2% inflation in the future.
Over the weekend, data revealed that Japan’s final GDP climbed 0.40% on a quarterly basis in 4Q 2014, lower than market expectations for a rise of 0.50%. In the previous quarter, GDP had fallen by a revised 0.60.
In other economic news, Japan’s trade deficit in January widened to ¥864.20 billion, from a trade deficit of ¥395.60 billion in the prior month.
The pair is expected to find support at 120.20, and a fall through could take it to the next support level of 119.35. The pair is expected to find its first resistance at 121.61, and a rise through could take it to the next resistance level of 122.16.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
