Investing.com - The dollar trader lower against the yen after weekly jobless claims came in worse than expected in the U.S., fueling already growing expectations that the Federal Reserve is preparing to stimulate the economy with monetary easing tools.
In U.S. trading on Thursday, USD/JPY was trading at 78.48, down 0.14%, up from a session low of 78.37 and off a high of 78.69.
The pair was likely to find support at 78.30, the low from Aug. 22, and resistance at 78.69, the earlier high.
U.S. weekly jobless claims disappointed on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits rose by 4,000 to a seasonally adjusted 372,000 last week, off from market calls for a decline of 3,000 to 365,000.
The previous week’s figure was revised up to 368,000 from a previously reported 366,000.
The jobless claims numbers came a day after the release of the minutes from the Federal Reserve's most recent monetary policy meeting, where the U.S. central bank revealed that policy action may be needed.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.
"Several members noted the benefits of accumulating further information that could help clarify the contours of the outlook for economic activity and inflation as well as the need for further policy action."
The comments sparked a dollar selloff that carried into Thursday on the notion that the Federal Reserve will announce plans to roll out a new round of quantitative easing soon.
Quantitative easing, under which the Fed buys bonds such as Treasury holdings and mortgage-backed securities from banks, weakens the dollar to spur recovery.
The dollar saw support, however, on new home sales.
Government data revealed that new homes sold in the U.S. outpaced expectations in July, climbing 3.6% to a seasonally adjusted 372,000 units last month and beating out forecasts for a 2.6% increase to 365,000.
Elsewhere in the U.S., Federal Reserve Bank of St. Louis President James Bullard said the minutes were "stale" and added that since then, bullish economic indicators have released, which supported the dollar as well somewhat.
Retail sales and consumer sentiment figures have surprised on the upside since the Fed's last meeting that ran from July 31 to Aug. 1.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.28% and trading at 124.45 and EUR/JPY up 0.12% and trading at 98.58.
On Friday, Bank of Japan Governor Masaaki Shirakawa is due to speak, and his comments will be watched for any hints to changes to monetary policy.
The U.S. will release data on durable goods orders, a key indicator of manufacturing production.
In U.S. trading on Thursday, USD/JPY was trading at 78.48, down 0.14%, up from a session low of 78.37 and off a high of 78.69.
The pair was likely to find support at 78.30, the low from Aug. 22, and resistance at 78.69, the earlier high.
U.S. weekly jobless claims disappointed on Thursday.
The U.S. Department of Labor reported earlier that the number of people filing for initial jobless benefits rose by 4,000 to a seasonally adjusted 372,000 last week, off from market calls for a decline of 3,000 to 365,000.
The previous week’s figure was revised up to 368,000 from a previously reported 366,000.
The jobless claims numbers came a day after the release of the minutes from the Federal Reserve's most recent monetary policy meeting, where the U.S. central bank revealed that policy action may be needed.
"Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery," the minutes read.
"Several members noted the benefits of accumulating further information that could help clarify the contours of the outlook for economic activity and inflation as well as the need for further policy action."
The comments sparked a dollar selloff that carried into Thursday on the notion that the Federal Reserve will announce plans to roll out a new round of quantitative easing soon.
Quantitative easing, under which the Fed buys bonds such as Treasury holdings and mortgage-backed securities from banks, weakens the dollar to spur recovery.
The dollar saw support, however, on new home sales.
Government data revealed that new homes sold in the U.S. outpaced expectations in July, climbing 3.6% to a seasonally adjusted 372,000 units last month and beating out forecasts for a 2.6% increase to 365,000.
Elsewhere in the U.S., Federal Reserve Bank of St. Louis President James Bullard said the minutes were "stale" and added that since then, bullish economic indicators have released, which supported the dollar as well somewhat.
Retail sales and consumer sentiment figures have surprised on the upside since the Fed's last meeting that ran from July 31 to Aug. 1.
The yen was up against the pound and down against the euro, with GBP/JPY down 0.28% and trading at 124.45 and EUR/JPY up 0.12% and trading at 98.58.
On Friday, Bank of Japan Governor Masaaki Shirakawa is due to speak, and his comments will be watched for any hints to changes to monetary policy.
The U.S. will release data on durable goods orders, a key indicator of manufacturing production.