We have updated our privacy policy and terms & conditions. Find out more here.

Forex - USD/JPY slightly higher as yen heads for weekly loss

ForexSep 13, 2013 03:36AM GMT Add a Comment
Share with a Friend
Thanks for sharing
Emails have been sent to:
To send more emails click here
Investing.com - The U.S. dollar traded higher against the Japanese yen during Friday’s Asian session ahead of more U.S. economic data that could serve as confirmation of imminent tapering of the Federal Reserve’s quantitative easing program.

In Asian trading Friday, USD/JPY rose 0.10% to 99.67 after earlier trading as high as 99.84. The pair was likely to find support at 98.55, Friday's low, and resistance at 100.61, Wednesday's high.

Many investors expect the Federal Reserve to announce plans to taper its USD85 billion in monthly asset purchases at its Sept. 17-18 meeting.

Stimulus tools such as Fed asset purchases weaken the dollar by driving down borrowing costs, and talk of their dismantling can strengthen the greenback.

Amid strong economic data and waning fears of an imminent U.S. military offensive against Syria, traders are preparing for a tapering announcement as soon as the end of the Fed meeting on September 18. It is believed that if the Fed does taper, it will reduce its bond purchases to USD75 billion per month.

In U.S. economic news out Thursday, initial claims for jobless benefits fell by 31,000 to 292,000 last week. Economists expected a reading of 330,000 claims. The less volatile four-week moving average fell to 321,250 from 328,750. That is the lowest reading since October 2007.

On Friday, the U.S. will release data on retail sales, producer price inflation and preliminary data from the University of Michigan on consumer sentiment.

If those data points provide upside surprises, or at the very least, do not disappoint to the downside, tapering could be a foregone conclusion, boosting the dollar in the process.

Elsewhere, EUR/JPY was flat at 132.39 while AUD/JPY fell 0.22% to 92.07.

Forex - USD/JPY slightly higher as yen heads for weekly loss

Related Articles

Dollar broadly supported vs. rivals, U.S. data on tap
Dollar broadly supported vs. rivals, U.S. data on tap
By Investing.com - Apr 01, 2015

Investing.com - The dollar was broadly higher against a basket of other major currencies on Wednesday, as growing expectations for a U.S. rate hike in the coming months continued ...

Forex - Euro off lows after euro zone factory data
Forex - Euro off lows after euro zone factory data
By Investing.com - Apr 01, 2015

Investing.com - The euro erased losses against the dollar on Wednesday after data showing manufacturing activity across the euro area grew at the fastest rate in 10 months in ...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?

Successfully Reported

Thank you. This comment has been flagged for a moderator.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.