USDJPY Movement
For the 24 hours to 23:00 GMT, the USD weakened 0.14% against the JPY and closed at 78.19.
Yesterday, the Bank of Japan (BoJ) Governor, Masaaki Shirakawa, speaking on central bank’s policies and operations on the occasion of the Annual Meetings of the IMF/World Bank Group, indicated that no economy in the world can hold on to high growth rates indefinitely and any attempt to reach such a scenario would result in various economic imbalances. According to him, the most important task for policy makers at this stage is to achieve a smooth transition from high growth to stable growth.
In economic news, Japan’s Eco Watchers survey of current conditions retreated to a reading of 41.2 in September, compared with a previous reading of 43.6 in August. Likewise, the economic outlook index, reflecting the level of confidence in future conditions, declined to a reading of 43.5 in September, compared with a previous reading of 43.6 in August.
In the Asian session, at GMT0300, the pair is trading at 78.28, with the USD trading 0.11% higher from yesterday’s close.
The pair is expected to find support at 78.14, and a fall through could take it to the next support level of 78.01. The pair is expected to find its first resistance at 78.43, and a rise through could take it to the next resistance level of 78.57.
Investors eye the release of Japanese machine tool orders scheduled to be released later today.
The currency pair is trading just above its 20 Hr moving average and showing convergence with its 50 Hr moving average.
