USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.19% against the JPY and closed at 98.66, ahead of Bank of Japan (BoJ)’s release of a monthly economic survey report, and amid speculations that the BoJ would further loosen monetary conditions to help the export-oriented economy face the global slowdown. Cleveland Fed President, Sandra Pianalto’s cautious comment on Fed’s decision to continue the pace of its stimulus measures lent support to the dollar.
In the Asian session, at GMT0400, the pair is trading at 98.65, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 98.49, and a fall through could take it to the next support level of 98.33. The pair is expected to find its first resistance at 98.78, and a rise through could take it to the next resistance level of 98.92.
Later today, the release of a report on Japan’s leading economic index and coincident index would also be keenly eyed by the traders.
The currency pair is showing convergence with its 20 Hr moving average and is trading just above its 50 Hr moving average.
