Investing.com - The dollar rose against the yen on Friday even after the U.S. Federal Reserve announced plans to stimulate the U.S. economy with a third round of quantitative easing, as Japan hinted it may follow suit with easing on its own.
In U.S. trading on Friday, USD/JPY was trading at 77.28, up 1.03%, up from a session low of 77.52 and off a high of 78.33.
The pair was likely to find support at 77.52, the earlier low, and resistance at 78.33,the earlier high.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of keeping interest rates low.
The Federal Reserve will inject a total of USD85 billion a month into the economy a month via its combined stimulus measures that will weaken the greenback to spur recovery.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
The move sent the dollar plunging against most other currencies and stocks gaining, though the greenback rose against the yen on reports that Finance Minister Jun Azumi said Japan may be ready to take steps to further weaken the yen.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 1.46% and trading at 127.01 and EUR/JPY trading up 1.93% at 102.61.
In U.S. trading on Friday, USD/JPY was trading at 77.28, up 1.03%, up from a session low of 77.52 and off a high of 78.33.
The pair was likely to find support at 77.52, the earlier low, and resistance at 78.33,the earlier high.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of keeping interest rates low.
The Federal Reserve will inject a total of USD85 billion a month into the economy a month via its combined stimulus measures that will weaken the greenback to spur recovery.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
The move sent the dollar plunging against most other currencies and stocks gaining, though the greenback rose against the yen on reports that Finance Minister Jun Azumi said Japan may be ready to take steps to further weaken the yen.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 1.46% and trading at 127.01 and EUR/JPY trading up 1.93% at 102.61.