USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 2.67% against the JPY and closed at 96.26. The Yen staged a rally yesterday after the Bank of Japan (BoJ) kept its monetary policy unchanged and offered no new easing moves in its latest policy decision.
Yesterday, the preliminary data released by the Japan Machine Tool Builders Association (JMTBA), indicated that Japan’s machine tool orders dropped 7.4% annually in May, following a decline of 23.6% reported in the previous month.
In the Asian session, at GMT0300, the pair is trading at 96.34, with the USD trading marginally higher from yesterday’s close.
Data released this morning indicated that Japan’s domestic corporate goods price index rose less than expected in May, while core machine orders fell 8.8% (MoM) in April.
The pair is expected to find support at 95.10, and a fall through could take it to the next support level of 93.86. The pair is expected to find its first resistance at 98.05, and a rise through could take it to the next resistance level of 99.76.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
