USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.34% against the JPY and closed at 89.31.
Yesterday, Japan’s leading index retreated to a reading of 91.9 in November, from a reading of 92.8 in October. Additionally, the coincident index declined to 90.1 in November, from a reading of 90.7 in the previous month.
In the US, the Commerce Department reported that, on a monthly basis, wholesale inventories in the US increased 0.6% in November, compared to a downwardly revised 0.3% rise recorded in October.
In the Asian session, at GMT0400, the pair is trading at 89.03, with the USD trading 0.31% lower from yesterday’s close.
This morning, the Japanese government approved a ¥10.3 trillion new emergency stimulus package to revive the nation’s economy and stimulate growth. Separately, the merchandise trade deficit in Japan widened more-than-expected to ¥847.5 billion in November, compared to a deficit of ¥450.3 billion recorded in the previous month.
The pair is expected to find support at 88.22, and a fall through could take it to the next support level of 87.42. The pair is expected to find its first resistance at 89.59, and a rise through could take it to the next resistance level of 90.15.
Trading trends in the pair today are expected to be determined by the eco watchers survey’s outlook and current data.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
