USDJPY Movement
For the 24 hours to 23:00 GMT, the USD marginally weakened against the JPY and closed at 102.82.
On the economic front, the Bank of Japan’s (BoJ), in its monthly economic survey revealed that the Japanese economy has continued to recover at a moderate pace, as a result of a pickup in the nation’s fixed investments, coupled with an improvement in public investment and corporate profits. However, the survey also pointed towards the downside risks to the economy, arising from global factors such as European debt problem and US economic recovery.
In the Asian session, at GMT0400, the pair is trading at 102.75, with the USD trading 0.07% lower from yesterday’s close. Earlier today, Japan’s Cabinet Office reported that machine orders in the nation rose 13.4% (MoM) in January, more than analysts’ expectations and compared to a 15.7% drop registered in the preceding month.
The pair is expected to find support at 102.50, and a fall through could take it to the next support level of 102.25. The pair is expected to find its first resistance at 103.04, and a rise through could take it to the next resistance level of 103.32.
Looking ahead, the BoJ is scheduled to publish the minutes from its latest policy meeting, later today.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.
