USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 1.24% against the JPY and closed at 99.40. The Yen came under pressure, after the Bank of Japan (BOJ) Chief, Haruhiko Kuroda, stated that the bank’s quantitative easing is having a positive impact on the Japanese economy and that the nation is starting to find its way out of deflation. He also confirmed that the central bank is committed to stick to quantitative easing programme as long as needed to meet its 2% inflation target.
In Japan, official data confirmed that the nation’s all industry activity index advanced 0.5% (MoM) in July, more than market expectation for a rise to 0.4% and compared to a 0.6% drop seen in the previous month. Another report showed that the leading economic index of the nation edged up to a level of 107.9 during July, following a reading of 107.3 registered in the previous month. Japan’s coincident index also improved to a reading of 107.7 in July, compared to a level of 106.6 recorded in the earlier month.
In the Asian session, at GMT0300, the pair is trading at 99.31, with the USD trading 0.09% lower from yesterday’s close. Earlier today, the Bank of Japan (BoJ) Governor, Haruhiko Kuroda, stated that the nation’s economy is anticipated to continue recovering at a moderate pace, with a pick-up in exports buoyed by a gradual increase in demand from overseas economies.
The pair is expected to find support at 98.47, and a fall through could take it to the next support level of 97.64. The pair is expected to find its first resistance at 99.89, and a rise through could take it to the next resistance level of 100.47.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
