Investing.com - The U.S. dollar is reversed course against the yen and is now trading higher against the Japanese currency after trading to the downside earlier in Thursday’s Asian session.
In Asian trading Thursday, USD/JPY is higher by 0.01% at 93.06. The pair was likely to find support at 92.56, Tuesday’s low and a five-week low and resistance at 94.36, Monday’s high.
The pair is seen swinging between gains and losses as traders await news out of the Bank of Japan meeting later today. This is the first BoJ meeting to be led by Governor Haruhiko Kuroda and most market participants expect Kuroda to announce some new monetary stimulus measures.
In a sign some traders are at least preparing for a possible disappointment, the yen firmed up in recent sessions as investors trimmed back expectations for aggressive easing measures by the BoJ at the conclusion of the bank’s policy today.
Kuroda, who has been vocal in his desires to jolt the Japanese economy through higher inflation and a weaker yen, is in a precarious position. He supports Japan’s 2% inflation target, but data still indicate Japan is suffering from a severe bout of deflation.
Additionally, the yen has been a safe-haven alternative to the U.S. dollar as euro zone fears have recently roiled global equity markets.
On n Wednesday, chatter surfaced that Kuroda is having difficulty building a consensus among BoJ members to move forward with immediate stimulus efforts. With expectations high for Kuroda to deliver news that will weaken the yen, yen bears are arguably pensive today.
Elsewhere, EUR/JPY is up 0.01% at 119.55. The pair sought to test support at 118.77, the low from Feb. 25, and resistance at 120.88, Tuesday's high. The European Central Bank meets later today.
AUD/JPY is higher by 0.17% at 97.52 while NZD/JPY is up 0.06% at 78.38.
In Asian trading Thursday, USD/JPY is higher by 0.01% at 93.06. The pair was likely to find support at 92.56, Tuesday’s low and a five-week low and resistance at 94.36, Monday’s high.
The pair is seen swinging between gains and losses as traders await news out of the Bank of Japan meeting later today. This is the first BoJ meeting to be led by Governor Haruhiko Kuroda and most market participants expect Kuroda to announce some new monetary stimulus measures.
In a sign some traders are at least preparing for a possible disappointment, the yen firmed up in recent sessions as investors trimmed back expectations for aggressive easing measures by the BoJ at the conclusion of the bank’s policy today.
Kuroda, who has been vocal in his desires to jolt the Japanese economy through higher inflation and a weaker yen, is in a precarious position. He supports Japan’s 2% inflation target, but data still indicate Japan is suffering from a severe bout of deflation.
Additionally, the yen has been a safe-haven alternative to the U.S. dollar as euro zone fears have recently roiled global equity markets.
On n Wednesday, chatter surfaced that Kuroda is having difficulty building a consensus among BoJ members to move forward with immediate stimulus efforts. With expectations high for Kuroda to deliver news that will weaken the yen, yen bears are arguably pensive today.
Elsewhere, EUR/JPY is up 0.01% at 119.55. The pair sought to test support at 118.77, the low from Feb. 25, and resistance at 120.88, Tuesday's high. The European Central Bank meets later today.
AUD/JPY is higher by 0.17% at 97.52 while NZD/JPY is up 0.06% at 78.38.