Investing.com - The U.S. dollar inched lower against the yen on Wednesday, after Federal Reserve Chairman Ben Bernanke offered a downbeat view of the U.S. economic outlook, but failed to explicitly indicate if additional stimulus measures are imminent.
USD/JPY hit 78.94 during late Asian trade, the session low; the pair subsequently consolidated at 79.04, dipping 0.03%.
The pair was likely to find support at 78.67, Monday’s low and a one-month low and resistance at 79.27, Monday’s high.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
The yen remained steady after the minutes of the Bank of Japan’s June meeting said earlier that the central bank should not outrule any policy options in the light of risks arising from the debt crisis in the euro zone.
The yen edged higher against the euro, with EUR/JPY dipping 0.08% to 97.11.
Later Wednesday, Ben Bernanke was to testify in front of the House Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.
USD/JPY hit 78.94 during late Asian trade, the session low; the pair subsequently consolidated at 79.04, dipping 0.03%.
The pair was likely to find support at 78.67, Monday’s low and a one-month low and resistance at 79.27, Monday’s high.
In testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday, Bernanke said growth had lost momentum in the first half of the year and added that progress on cutting the U.S. unemployment rate was “frustratingly” slow.
However, he refrained from indicating whether the Fed would embark on a third round of quantitative easing to stimulate the economy, but reiterated that the central bank was prepared to take further action to support the economic recovery if necessary.
The yen remained steady after the minutes of the Bank of Japan’s June meeting said earlier that the central bank should not outrule any policy options in the light of risks arising from the debt crisis in the euro zone.
The yen edged higher against the euro, with EUR/JPY dipping 0.08% to 97.11.
Later Wednesday, Ben Bernanke was to testify in front of the House Financial Services Committee. In addition, the U.S. was to publish official data on building permits and housing starts.