USDJPY Movement
For the 24 hours to 23:00 GMT, USD traded flat against the JPY and closed at 79.91.
The Institute for Supply Management (ISM) reported that its Non-Manufacturing Index in the US fell to a reading of 52.1 in June, its lowest level since January 2010.
Separately, the Bank of Japan (BoJ) Governor, Masaaki Shirakawa, stated that nation’s economy is expected to return to a moderate recovery path as domestic demand remains firm and overseas economies emerge from the deceleration phase. However, he added that Euro-zone crises remained the biggest threat to Japan’s economic prospects.
On the other hand, the BoJ, in its quarterly regional economic report, lifted its view for all of Japan’s regional economies on rising investment and employment situation. This was the first time since October 2009 that the BoJ has upgraded assessment for all the nine regions.
In the Asian session, at GMT0300, the pair is trading at 79.93, with the USD trading marginally higher from yesterday’s close.
The pair is expected to find support at 79.63, and a fall through could take it to the next support level of 79.32. The pair is expected to find its first resistance at 80.17, and a rise through could take it to the next resistance level of 80.40.
Investors are awaiting leading index and coincidence index data in Japan later today.
The currency pair is trading below its 20 Hr and 50 Hr moving averages.
