USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.77% against the JPY and closed at 80.99. Yen came under pressure, after industrial production in Japan dropped 1.6% (MoM) in February, compared to the preliminary reading of a 1.8% decline. Additionally, the capacity utilization on a seasonally adjusted monthly basis fell 1.7% in February, compared to 3.2% rise in January.
Meanwhile, the Consumer Confidence Index in Japan climbed to 40.3 in March, compared to a revised reading of 39.9 in February.
Separately, Japanese Finance Minister, Jun Azumi, stated that country would provide $60 billion to the International Monetary Fund’s effort to expand its resources and safeguard the global economy against worsening Euro-zone debt crisis.
In the Asian session, at GMT0300, the pair is trading at 81.39, with the USD trading 0.49% higher from yesterday’s close. Yen is trading lower against greenback, after a newspaper reported that Bank of Japan (BoJ) may raise its inflation forecasts, raising speculation that the central bank would go for another round of monetary easing to achieve its price target.
The pair is expected to find support at 80.70, and a fall through could take it to the next support level of 80.01. The pair is expected to find its first resistance at 81.74, and a rise through could take it to the next resistance level of 82.10.
Trading trends in the pair today are expected to be determined by merchandise trade balance data release in Japan.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
