USDJPY Movement
On Friday, the USD weakened 0.50% against the JPY and closed at 101.28, after the Reuters/University of Michigan’s consumer sentiment index in the US unexpectedly fell to a four-month low reading in March.
Meanwhile, the Japanese Yen advanced as tensions in Ukraine and lingering concerns on China’s economic growth fuelled demand for safe-haven assets.
Over the weakened, majority of Crimea’s citizens voted in favour to join Russia and secede from Ukraine. However, the US President, Barack Obama stated that Crimea’s vote to join Russia, would never be recognised by the US and the international community, as the “referendum” itself violated the Ukrainian constitution and occurred under the threats of Russian military intervention.
In the Asian session, at GMT0400, the pair is trading at 101.54, with the USD trading 0.26% higher from Friday’s close.
The Japanese Yen reversed its profits after news emerged that the West would impose sanctions against Russia following the referendum in Crimea, increasing demand for safe haven assets.
The pair is expected to find support at 101.22, and a fall through could take it to the next support level of 100.91. The pair is expected to find its first resistance at 101.84, and a rise through could take it to the next resistance level of 102.14.
The currency pair is trading between its 20 Hr and 50 Hr moving averages.
