For the 24 hours to 23:00 GMT, the USD declined 2.53% against the JPY and closed at 107.36.
The Bank of Japan (BoJ), in its interest rate decision, kept its key interest rate unchanged at -0.10%, as widely expected. Moreover, the central bank has increased its lending package to $1 trillion from about $700 billion announced last month. Meanwhile, Governor Haruhiko Kuroda indicated that interest rates would likely remain ultralow into 2023 and warned that the coronavirus pandemic could end up having a longer-than-expected impact on the economy.
In the Asian session, at GMT0300, the pair is trading at 107.23, with the USD trading 0.12% lower against the JPY from yesterday’s close.
Overnight data showed that Japan’s merchandise (total) trade deficit narrowed to ¥833.4 billion in May, compared to a revised deficit of ¥931.9 billion in the prior month.
The pair is expected to find support at 107.05, and a fall through could take it to the next support level of 106.88. The pair is expected to find its first resistance at 107.52, and a rise through could take it to the next resistance level of 107.82.
Amid no macroeconomic releases in Japan today, investor sentiment would be governed by global macroeconomic factors.
The currency pair is trading below with its 20 Hr and 50 Hr moving averages.