USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.38% against the JPY and closed at 100.13. The decline in the Yen followed the Bank of Japan’s (BoJ) decision to keep its monetary policies unchanged at its two-day policy meeting and after the BoJ Governor, Haruhiko Kuroda, in response to a recent debate over the nation’s sales tax plan, stated that the central bank is ready to take appropriate steps if a planned sales-tax hike in April turns out to be a big blow to growth and consumption, threatening to derail the central bank’s efforts to achieve its 2% inflation target.
In the Asian session, at GMT0300, the pair is trading at 99.81, with the USD trading 0.32% lower from yesterday’s close. Earlier today, an official report revealed that Japan’s foreign-exchange reserves increased marginally to a level of $1,254.2 billion in August, from a reading of $1,254.0 billion registered in the previous month.
The pair is expected to find support at 99.50, and a fall through could take it to the next support level of 99.20. The pair is expected to find its first resistance at 100.17, and a rise through could take it to the next resistance level of 100.54.
Investors await the BoJ’s monthly economic survey report, scheduled to release later today. Traders are also expected to keep a close watch over Japan’s coincident index and leading economic index, which the market expects to show an improvement in July.
The currency pair is trading below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
