USDJPY Movement
For the 24 hours to 23:00 GMT, the USD strengthened 0.12% against the JPY and closed at 102.68. The Japanese Yen came under pressure after trade deficit in Japan jumped nearly 70% to a record 13.75 trillion in the last fiscal year, hurt by a slowdown in the pace of the nation’s export.
Meanwhile, in an interview with Reuters, an ex-BoJ official, Miyako Suda opined that Japan’s central bank would likely refrain from expanding its monetary stimulus programme in the near future but cautioned at the same time also that if the BoJ does act, it would take “extraordinary” measures, including massive purchase of government bonds.
In the Asian session, at GMT0300, the pair is trading at 102.66, with the USD trading marginally lower from yesterday’s close.
The pair is expected to find support at 102.52, and a fall through could take it to the next support level of 102.39. The pair is expected to find its first resistance at 102.77, and a rise through could take it to the next resistance level of 102.88.
During the later course of the day, the Cabinet Office is expected to publish reports on Japan’s leading economic index and coincident index for February.
The currency pair is showing convergence with its 20 Hr moving average and is trading above its 50 Hr moving average.
