USDJPY Movement
For the 24 hours to 23:00 GMT, USD strengthened 0.47% against the JPY and closed at 81.13.
In Japan, the leading index rose to 94.90 in January, while the coincident index fell to a reading of 93.1 in January.
In the Asian session, at GMT0400, the pair is trading at 81.24, with the USD trading 0.13% higher from yesterday’s close. The Yen came under pressure, after a record current account deficit in Japan.
Data released this morning showed that the Japan’s Gross Domestic Product shrank 0.2% (QoQ) in 4Q FY2011, compared to preliminary reported 0.6% contraction. Additionally, Japan’s current account balance swung to a record deficit of ¥437.3 billion in January, marking its first shortfall since January 2009.
The pair is expected to find support at 80.77, and a fall through could take it to the next support level of 80.3. The pair is expected to find its first resistance at 81.53, and a rise through could take it to the next resistance level of 81.83.
The pair is expected to trade on the cues from the release of eco watchers survey, machine tool orders and Money Supply in Japan.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
