The Asian trading session on Monday saw a rise in the movements of the U.S. dollar in comparison to the Japanese yen, continuing on the bullish trends observed in the previous week, which positioned the currency to its topmost levels in comparison with the Japanese currency, seen in about 4 years. With the analysts expecting a fall in February to a value of -2%, the yen held back compared to the dollar, following the Economic and Social Research Institute statement that Japan’s Core Machinery Orders had dropped to -13.1% in February from a level of 2.8% in January.
Monday in the Asian trading markets indicated that the USD/JPY had increased 0.11% to a value of 96.16. The currency pair was expected to find support at a value of 92.92, Tuesday’s low, and resistance at a level of 96.56, observed as Friday’s high. A separate report presented by the Bank of Japan stated that the M2 money supply of Japan had unpredictably increased in February to a value of 2.9% from a position of 2.7% seen in January. The analysts had however, expected the values in February to be moving at a flat pace against January. Following the conclusion of the recent meeting regarding monetary policies, The BOJ is expected to release the details on Tuesday, which is also a point of focus for traders.
Another factor that is motivating the traders to push the dollar higher in comparison with the Yen is the hope that the BOJ will agree to the easing measures, which will come into effect without delay. Initially this year, BOJ approved purchase of new asset, however held that the plan would not come into effect until 2014. The next meeting of the central bank is scheduled to be held in early April.
Monday revealed that the British pound had moved higher against the U.S. dollar, with indications that GBP/USD trading at 1.4916, up 0.03%. The British Pound was also higher with respect to the Euro and lower against the Japanese yen, with the EUR/GBP sliding 0.11% to reach 0.8707 and GBP/JPY lowering 0.03% to hit 143.16.