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Forex - USD/JPY climbs higher after Fed statement

Published 08/01/2013, 02:59 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar climbed higher against the yen on Thursday, after the Federal Reserve declined from indicating whether or not it will begin to taper its stimulus program in the near future, lending support to the greenback.

USD/JPY hit 98.78 during early European trade, the pair's highest since July 26; the pair subsequently consolidated at 98.72, advancing 0.83%.

The pair was likely to find support at 97.58, Wednesday's low and a five-week low and resistance at 99.36, the high of July 26.

At the end of its two-day policy meeting on Wednesday, the Fed said it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".

However, speculation that the central bank could begin to scale back its stimulus program as soon as September persisted in light of recent U.S. economic reports. Investors were also eyeing the release of U.S. employment data on Friday.

The yen was lower against the euro with EUR/JPY climbing 0.46%, to hit 130.82.

Markets also awaited the European Central Bank's upcoming policy statement, as well as ECB President Mario Draghi's traditional press conference.

Later in the day, the U.S. was to publish official data on weekly unemployment claims, followed by a report by the Institute of Supply Management on manufacturing activity.


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