Investing.com – The yen tumbled to hit a 2-week low against the pound on Wednesday, after Japan’s government intervened in the currency market to arrest the yen’s recent sharp gains against the U.S. dollar.
GBP/JPY hit 132.82 during European morning trade, the pair’s highest since August 30; the pair subsequently consolidated at 132.25, soaring 2.50%.
The pair was likely to find support at 127.62, Tuesday’s low, and resistance at 133.59, the high of August 30.
The Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
Earlier in the day, Japan’s Finance Minister Yoshihiko Noda said that Japan would continue to "closely monitor" foreign exchange movements and pledged further "determined steps, when necessary".
Meanwhile, the pound was down against the U.S. dollar, with GBP/USD shedding 0.14% to hit 1.5515.
Earlier Wednesday, official data showed that U.K. jobless claims increased more-than-expected in August, rising for the first time in 7 months.
GBP/JPY hit 132.82 during European morning trade, the pair’s highest since August 30; the pair subsequently consolidated at 132.25, soaring 2.50%.
The pair was likely to find support at 127.62, Tuesday’s low, and resistance at 133.59, the high of August 30.
The Governor of the Bank of Japan Masaaki Shirakawa said that he “strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable foreign exchange rate formation."
Earlier in the day, Japan’s Finance Minister Yoshihiko Noda said that Japan would continue to "closely monitor" foreign exchange movements and pledged further "determined steps, when necessary".
Meanwhile, the pound was down against the U.S. dollar, with GBP/USD shedding 0.14% to hit 1.5515.
Earlier Wednesday, official data showed that U.K. jobless claims increased more-than-expected in August, rising for the first time in 7 months.