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Forex - USD/JPY eases but supported near 4-year highs

Published 04/09/2013, 03:23 AM
USD/JPY
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EUR/JPY
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Investing.com - The dollar eased back from almost four-year highs against the yen on Tuesday as traders locked in profits following a recent rally, but the yen’s weakening trend looked likely to remain intact.

USD/JPY hit 98.75 during late Asian trade, the session low; the pair subsequently consolidated at 98.97, down 0.57%.

The pair was likely to find support at 97.82, Friday’s high and resistance at 99.68, the session high and the pair’s highest since May 2009.

The yen has fallen to multi-year lows against the other major currencies since the Bank of Japan unveiled a massive monetary stimulus program last week.

The BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases in a bid to achieve its 2% inflation target.

The central bank conducted its first government bond purchasing operation on Monday, purchasing JPY1.2 trillion of Japanese government bonds maturing in five years or more.

The euro also slipped lower against the yen on Tuesday, with EUR/JPY easing 0.21% to 128.97, but remained supported close to the highest level since January 2010.




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