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Forex - USD/JPY slips to daily low as U.S. bond yields ease

Published 12/16/2010, 05:20 AM
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Investing.com – The U.S. dollar slipped against the yen on Thursday, falling to a daily low as U.S. Treasury yields pulled back from recent highs.

USD/JPY hit 83.97 during European morning trade, the daily low; the pair subsequently consolidated at 84.03, shedding 0.24%.

The pair was likely to find support at 83.59, Wednesday’s low and resistance at 84.50, Wednesday’s high.

Earlier in the day, the Bank of Japan made its first purchase of real estate investment trusts, completing the rollout of its asset buying scheme launched in October.

The BOJ pledged to buy up to JPY5 trillion yen in assets ranging from government bonds to corporate debt, by the end of 2011. The bank hopes that its unconventional step of buying private risk assets will draw more investors and money into these markets.

Also Thursday, a Japanese government report said that the country will lower its corporate tax rate next year in an attempt to bolster a slowing economy. 

The yen was also up against the euro, with EUR/JPY sliding 0.11% to hit 111.18.

Later Thursday, the U.S. was to publish a key weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity in Philadelphia.

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