USDJPY Movement
On Friday, the USD strengthened 0.31% against the JPY and closed at 102.00.
Following the BoJ’s decision, to keep its policy stance unchanged at its two-day meeting in June, Governor, Haruhiko Kuroda hinted that central bank’s aggressive easing measures would continue for at least another year, as according to him, despite the encouraging Japanese consumer price data, the nation has only reached “half the way” in its path towards achieving its 2.0% inflation target.
In the Asian session, at GMT0300, the pair is trading at 101.87, with the USD trading 0.13% lower from Friday’s close, as escalating violence in Iraq supported demand for safe-haven yen.
The pair is expected to find support at 101.71, and a fall through could take it to the next support level of 101.54. The pair is expected to find its first resistance at 102.09, and a rise through could take it to the next resistance level of 102.31.
Later today, market participants would keep a close eye on the release of BoJ’s monthly economic survey data, to gauge the economic condition in Japan.
The currency pair is trading just below its 20 Hr and 50 Hr moving averages.
