Yen Trading Tad Lower Ahead Of The Planned Sale-Tax Hike In Japan
GCI Financial | Apr 01, 2014 04:09AM ET
For the 24 hours to 23:00 GMT, the USD strengthened 0.32% against the JPY and closed at 103.23.
Yesterday, data from Japan showed that housing starts rose 1.0% (YoY) in February, less than analysts’ estimates for a 4.9% rise and compared to a 12.3% surge in the previous month. Another report showed that construction orders in Japan rose 12.3% (YoY) in February, following a 15.2% increase in the preceding month.
In the Asian session, at GMT0300, the pair is trading at 103.29, with the USD trading slightly higher from yesterday’s close.
Early morning, at a BOJ ceremony to mark the new fiscal year, the BoJ Governor, Kuroda noted that the Japanese economy “is smoothly following path to its 2% inflation target” and that it would “escape deflation, no matter what problems arise.”
Separately, data showed that the Tankan large manufacturing index rose less-than-expected to a reading of 17.0 in the first quarter while the Tankan large manufacturing outlook declined more-than-expected to a reading of 8.0 in the first quarter. Likewise, the Tankan non-manufacturing outlook also registered a more-than-expected fall but the Tankan non-manufacturing index rose in-line with market expectations for the first-quarter.
The pair is expected to find support at 102.89, and a fall through could take it to the next support level of 102.50. The pair is expected to find its first resistance at 103.56, and a rise through could take it to the next resistance level of 103.84.
Market participants keenly observe the impact of a planned sales-tax hike in Japan, expected to come in effect later today.
The currency pair is trading above its 20 Hr and 50 Hr moving averages.
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