For the 24 hours to 23:00 GMT, the USD weakened 0.09% against the JPY and closed at 102.15. The Japanese Yen gained ground as lacklustre manufacturing PMI data from China and escalating violence in Ukraine spurred demand for the safe-haven currency. The Yen also received some support as optimistic comments from the BoJ Governor, Haruhiko Kuroda on the recovery of the Japanese economy dampened speculation for additional stimulus measures. Kuroda, in an interview with CNBC, stated that economy would start to recover in the July-September quarter and withstand the ill-effects of a hike in Japan’s sales tax, which he termed as less than what markets had expected.
In the Asian session, at GMT0300, the pair is trading at 102.06, with the USD trading 0.09% lower from yesterday’s close.
The pair is expected to find support at 101.88, and a fall through could take it to the next support level of 101.70. The pair is expected to find its first resistance at 102.22, and a rise through could take it to the next resistance level of 102.39.
Amid lack of economic releases from Japan, later today, traders would focus on the release of the minutes from the BoJ’s latest policy meeting, scheduled for release early Wednesday.
The currency pair is showing convergence with its 20 Hr moving average and is trading below its 50 Hr moving average.