USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.33% against the JPY and closed at 80.16, after reports showed a rise in US manufacturing activity.
In the US, the Institute for Supply Management reported that manufacturing PMI rose to 54.8 in April, compared to 53.4 in March. Analysts had expected the index to drop to 53.0 in April.
In the Asian session, at GMT0300, the pair is trading at 80.17, with the USD trading flat from yesterday’s close.
This morning, the Bank of Japan reported that on an annual basis, the monetary base in Japan fell 0.3% to stand at ¥121.50 trillion in April, compared to a 0.2% fall recorded in March. Additionally, Japanese composite PMI dropped to a reading of 51.3 in April compared to a reading of 53.2 posted in the previous month. Meanwhile, the labor cash earnings in Japan rose 1.3% (YoY) in March, compared to 0.1% rise in previous month.
The pair is expected to find support at 79.77, and a fall through could take it to the next support level of 79.38. The pair is expected to find its first resistance at 80.43, and a rise through could take it to the next resistance level of 80.70.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
