USDJPY Movement
For the 24 hours to 23:00 GMT, USD weakened 0.32% against the JPY and closed at 79.90, after the Ben Bernanke statement, on late Tuesday, raised concerns over the slow US economic recovery.
In Japan, yesterday, the current conditions index rose to a reading of 36.0 in May, following a reading of 28.3 posted in April. Meanwhile, the economic outlook index rose to a reading of 44.9 in May, compared to a level of 38.4 posted in the previous month. Additionally, this morning, the annualized gross domestic product fell 3.5% in the first quarter of 2011, following a preliminary reading of a 3.7% contraction.
In the Asian session at 3:00GMT, the pair is trading higher from yesterday’s close at 23:00 GMT, by 0.41%, at 80.23.
The first short term resistance is at 80.47, followed by 80.72. The pair is expected to find support at 79.82 and the subsequent support level at 79.42.
With a series of Japan economic releases today, including consumer confidence and tertiary industry index, trading in the pair is expected to be influenced by the resulting cues from these releases.
The currency pair is trading just above its 20 Hr and its 50 Hr moving averages.
