Yen Trading Higher Amid Strong Demand For Safe-Haven Assets
GCI Financial | Mar 10, 2014 02:45AM ET
On Friday, the USD strengthened 0.25% against the JPY and closed at 103.32.
In the Asian session, at GMT0400, the pair is trading at 103.07, with the USD trading 0.24% lower from Friday’s close.
The Yen is trading higher against its US counterpart following latest batch of downbeat data from China and lingering tensions in Ukraine fuelled demand for safe-haven assets. However, lacklustre Japan’s fourth-quarter GDP data kept the currency’s gains in check. Japan’s annualised GDP rose 0.7% in the fourth-quarter and failed to meet market estimates calling for a rise of 0.9% and compared to a 1.0% increase recorded in the preceding quarter. Another report revealed that, on a non-seasonally adjusted basis, current account deficit in Japan rose to a record ¥1,589.0 billion in January, compared to previous month’s deficit of ¥638.6 billion. Meanwhile, bank lending in Japan rose 2.2% (YoY) in February, following a 2.3% (YoY) increase in the preceding month. Also earlier today, the Eco Watchers survey reported that current economic situation in Japan declined more than expected to a reading of 53.0 in February while the economic outlook of the nation also registered a fall to a reading of 40.0 in the previous month.
The pair is expected to find support at 102.68, and a fall through could take it to the next support level of 102.28. The pair is expected to find its first resistance at 103.62, and a rise through could take it to the next resistance level of 104.17.
Market participants are expected to keep an eye on the Bank of Japan’s money supply data, expected to release later today, while investors would turn their attention to the BoJ’s monetary policy meeting scheduled tomorrow.
The currency pair is trading just below its 20 Hr moving average and is showing convergence with its 50 Hr moving average.
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