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Forex - USD/JPY holds lower but steady ahead of BoJ meeting

Published 09/17/2012, 09:28 PM
USD/JPY
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EUR/JPY
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Investing.com - The dollar slid against the yen on Tuesday, erasing gains stemming from sentiments the Bank of Japan will announce plans to stimulate its economy, which would weaken the yen.

The Federal Reserve recently announced plans to jolt the U.S. economy, which sent the dollar weakening against most other currencies save the yen in recent sessions, which has faced downward pressures on bets the Bank of Japan will follow suit.

Bottom fishing sent the yen up on Tuesday.

In Asian trading on Tuesday, USD/JPY was trading at 78.55, down 0.19%, up from a session low of 78.49 and off a high of 78.68.

The pair was likely to find support at 78.17, Monday's low, and resistance at 78.93, Monday's high.

The Federal Reserve late last week announced plans to buy USD40 billion in mortgage-backed securities a month from banks in an ongoing basis until the economy improves and job demand grows, a policy measure known as quantitative easing, which weakens the dollar to spur recovery and job demand.

The move sent the greenback dropping against most other currencies save the yen.

Reports that Finance Minister Jun Azumi said Japan may be ready to take similar steps to further weaken the yen kept the pair following its own steering currents and the yen falling.

By Asian trading on Tuesday, however, the yen regained strength against the greenback as investors bought and sold and jumped to the sidelines to await the Bank of Japan's policy announcement on Wednesday.

The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.27% and trading at 127.54 and EUR/JPY trading down 0.36% at 102.86.










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