For the 24 hours to 23:00 GMT, the USD weakened 0.39% against the JPY and closed at 102.85. The Japanese Yen rose against the US Dollar as lingering concerns over China’s economic growth and increasing standoff between the EU and Russia regarding the Crimean referendum fuelled demand for safe-haven assets.
Also yesterday, the Bank of Japan (BoJ) Chief, Haruhiko Kuroda played down concerns on the slackness in the nation’s export sector by stating that weakness in the exports is only temporary and that it would resume growth once these factors fade away. Furthermore, he reiterated that the economy was on track to meet its 2% inflation target and that the BoJ did not see any immediate need to alter its policy at present.
In the Asian session, at GMT0400, the pair is trading at 103.00, with the USD trading 0.14% higher from yesterday’s close. Early morning, data showed that Japan’s tertiary industry index registered an upbeat rise of 0.9% (MoM) in January, following a 0.5% drop registered in the preceding month. Separately, the consumer confidence index in the nation declined more-than-expected to a reading of 38.3 in February, from previous month’s level of 40.5.
The pair is expected to find support at 102.72, and a fall through could take it to the next support level of 102.45. The pair is expected to find its first resistance at 103.32, and a rise through could take it to the next resistance level of 103.64.
Later today, Japan’s Cabinet Office is expected to publish a report on Japan’s machinery orders for January.
The currency pair is showing convergence with its 20 Hr moving average and is trading just below its 50 Hr moving average.