Topic: COZforex: BoJ’s policy having an intended effect on the economy

COZforex: For the past trading session, the USD marginally weakened against the JPY and closed at 102.54.

Yesterday, in Japan, BoJ Deputy Governor, Kikuo Iwata, echoed Governor, Haruhiko Kuroda’s view that, the central bank’s “qualitative and quantitative easing policy was exerting intended effects on the economy” while projecting a rise in the nation’s exports with a recovery in the overseas economies.

Separately, Japan’s consumer confidence index rise for the first time in 6 months to a reading of 39.3 in May. Meanwhile, Japan’s index on economy watchers’ assessment of current conditions rose more-than-expected to a level of 45.1 while its index on the economic outlook advanced to a figure of 53.8 in May.

Early morning, data showed that an index measuring tertiary industry activity in Japan dropped 5.4% in April, following a 2.4% rise in the preceding month.

In technical analysis, COZFX strategist Nigel Boynton said, USD/JPY is predicted to find support at 102.29 and a drop through could take it to the next support line of 102.19. Meanwhile, the pair is predicted to find its first resistance at 102.56, and a rise through could take it to the next resistance line of 102.72.

During lack of major economic releases in Japan, later today, traders would eye global economic news for further guidance in the Yen.

(COZ forex UK)