USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.71% against the JPY and closed at 99.69.
In the Asian session, at GMT0300, the pair is trading at 99.59, with the USD trading marginally lower from yesterday’s close. The Yen rose as speculation increased that the Bank of Japan (BoJ) would take no more monetary easing steps, after remarks by the central bank Governor, Haruhiko Kuroda took traders by surprise. Haruhiko Kuroda indicated that the central bank has already taken all “necessary” and “possible” measures to achieve the set inflation target.
In economic news, machinery orders in Japan rebounded 7.5% (MoM) in February, from a 13.1% drop recorded in the previous month. Also, money supply increased 3.0% (YoY) in March, from 2.9% growth recorded earlier. Meanwhile, domestic corporate goods prices in Japan dropped 0.5% (YoY) in March, following a 0.1% fall in February.
The pair is expected to find support at 99.04, and a fall through could take it to the next support level of 98.48. The pair is expected to find its first resistance at 100.02, and a rise through could take it to the next resistance level of 100.44.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
