Japanese Yen Reverses Its Losses In The Asian Session
For the 24 hours to 23:00 GMT, the USD rose 0.22% against the JPY and closed at 113.96.
In the Asian session, at GMT0400, the pair is trading at 113.69, with the USD trading 0.22% lower from Friday’s close.
Earlier today, BoJ Governor, Haruhiko Kuroda, voiced confidence in the strength of Japan’s fundamentals while adding that the positive effects of the central bank’s negative interest rate policy would help it augment further. Also, he refuted the criticism that the central bank’s negative interest rate decision failed to lift the nation’s financial market.
In other economic news, Japan’s preliminary leading index fell more-than-expected to a level of 101.4 in January, compared to market expectations for a fall to a level of 101.6 and following a revised reading of 101.8 in the previous month. On the other hand, the nation’s flash coincident index advanced to a level of 113.8 in January, in line with market consensus and after recording a reading of 110.9 in the previous month.
The pair is expected to find support at 113.13, and a fall through could take it to the next support level of 112.56. The pair is expected to find its first resistance at 114.26, and a rise through could take it to the next resistance level of 114.82.
Going ahead, Japan’s final Q4 GDP data, scheduled to be released overnight, will be on investor’s radar.
The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.