USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.97% against the JPY and closed at 100.83, supported by a favorable jobless claims report. The Yen traded lower yesterday, breaking through the significant ‘100’ mark, as the Bank of Japan’s (BoJ) aggressive monetary easing policies come into effect.
On the macro front, Japan’s leading economic index fell to a reading of 97.6 in March, from a revised reading of 97.7 recorded in the previous month. Meanwhile, coincident index rose to a reading of 93.3 in March, from a revised reading of 92.5 recorded in the previous month.
In the Asian session, at GMT0300, the pair is trading at 100.98, with the USD trading 0.15% higher from yesterday’s close.
This morning, data indicated that, Japan’s bank lending rose 1.7% (YoY) in April, following a revised 1.5% recorded in March. Additionally, Japan’s Ministry of Finance reported that the nation’s current account surplus rose to ¥1.25 trillion in March, surpassing market expectations for a surplus of ¥1.22 trillion, indicating that country’s efforts to weaken the yen are having the desired impact and could be bolstering the world’s third-largest economy.
The pair is expected to find support at 99.35, and a fall through could take it to the next support level of 97.71. The pair is expected to find its first resistance at 101.92, and a rise through could take it to the next resistance level of 102.85.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
