USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.27% against the JPY and closed at 97.34, ahead of the release of the minutes from Fed’s latest policy meeting, due later today.
On the economic front, Japan’s all industry activity index fell 0.6% (MoM) during June, below market expectation for a 0.5% decline and compared to a 1.2% gain registered in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 97.26, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 96.86, and a fall through could take it to the next support level of 96.46. The pair is expected to find its first resistance at 97.71, and a rise through could take it to the next resistance level of 98.15.
Investors are expected to keep a close watch over the release of an official report on the amount of foreign investment made in Japanese bonds and stocks during the week ended 16 August 2013. Also, traders would watch for corporate service price index in Japan due for release ahead today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below 50 Hr moving average.
