Monday started out on a positive note against the JPY after last week's G-20 meeting of finance ministers and central bank governors. However, several majors were unable to sustain their rally against the Yen as the day ended.
USD/JPY
Contrary to earlier expectations, the USD/JPY pair has yet to break through the psychological level of 100.00. Rather it has hovered between 99.20 and 99.35.
There were great expectations yesterday of the pair rallying through to 100.00 or higher after Japan avoided being singled out during the G-20 meeting due to its aggressive monetary policies. Bank of Japan (BoJ) Governor Kuroda was able to convince members that the recent move to inject stimulus into the Japanese economy was to prevent deflation rather than to weaken the Yen intentionally.
The rally was also held back by the disappointing US housing data, as the pair dropped below 99.00. However, it was able to bounce bank to its current levels above 99.00.
Despite these developments, however, the USD/JPY is only expected to rise further and break beyond 100.00. Resistance for the pair is seen at around 99.90-100.00, while support is at 98.96-99.50.
AUD/JPY
Meanwhile, the AUD was also unable to maintain its rally versus the JPY. From highs of 103.00, the pair eventually went down to 101.95 to close Monday's US session. Focus is currently on the upcoming Manufacturing Purchasing Managers' Index (PMI) data from China at 1:45am GMT. The figure was previously at 51.6 and is expected to contract slightly at 51.4.
GBP/JPY
The GBP too was unable to raise higher its pair with the JPY in Monday's session, ending lower at 151.79. It was, however, able to move up from the day's low of 150.89. Despite the temporary drop, the pair's value is significantly higher than figures over the past 12 months. It sank lowest in June 2012 at around the 119.785 level.
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