USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.78% against the JPY and closed at 97.63.
Yesterday, the Bank of Japan Deputy Governor, Kikuo Iwata ruled out using its policy ammunition to deal with temporary market turbulence, indicating that it would take a long-term decline in price expectations for him to consider additional monetary easing.
In the Asian session, at GMT0300, the pair is trading at 97.33, with the USD trading 0.31% lower from yesterday’s close.
This morning, the Bank of Japan (BoJ) reported that the corporate service price index in Japan rose 0.3% annually in May, against the expected flat reading and compared to a revised 0.3% drop reported in April.
The pair is expected to find support at 96.78, and a fall through could take it to the next support level of 96.23. The pair is expected to find its first resistance at 98.31, and a rise through could take it to the next resistance level of 99.29.
In the absence of major economic news in Japan today, investors shall eye the durable goods orders, housing price index, consumer confidence and the new home sales data scheduled for release in the US later today.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
