Investing.com – The U.S. dollar was lower against the yen on Wednesday, pulling back from an eight-day high as markets stabilized following Tuesday’s move by Switzerland’s central bank to curb the appreciation of the franc.
USD/JPY hit 77.08 during late Asian trade, the daily low; the pair subsequently consolidated at 77.24, shedding 0.52%.
The pair was likely to find support at 76.71, Tuesday’s low and resistance at 77.72, Tuesday’s high and an eight-day high.
Earlier in the day, the Bank of Japan kept its benchmark interest rate unchanged at 0.1%, in a widely expected decision and announced no new monetary easing measures.
The central bank said that Japan’s economy should resume a moderate recovery later this year but sounded a note of caution over current turmoil in global markets.
"We feel the need to carefully examine how uncertainty on overseas developments and ensuing fluctuations in currencies and financial markets could affect Japan's economy," the bank said.
Tuesday’s intervention by the Swiss National Bank to weaken the franc sparked concerns that safe haven inflows could shift to the yen, amid ongoing concerns over the outlook for global growth.
Earlier Wednesday, Japan’s Finance Minister Jun Azumi said he believed the yen was still overvalued, but stopped short of indicating that Japan would follow the SNB’s intervention, saying instead that he was watching market moves, including those by speculators.
The yen was almost unchanged against the euro, with EUR/JPY inching up 0.04% to hit 108.75.
Later in the day, Germany’s constitutional court was to hand down a ruling on the legality of the bailout for Greece. In addition, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.
USD/JPY hit 77.08 during late Asian trade, the daily low; the pair subsequently consolidated at 77.24, shedding 0.52%.
The pair was likely to find support at 76.71, Tuesday’s low and resistance at 77.72, Tuesday’s high and an eight-day high.
Earlier in the day, the Bank of Japan kept its benchmark interest rate unchanged at 0.1%, in a widely expected decision and announced no new monetary easing measures.
The central bank said that Japan’s economy should resume a moderate recovery later this year but sounded a note of caution over current turmoil in global markets.
"We feel the need to carefully examine how uncertainty on overseas developments and ensuing fluctuations in currencies and financial markets could affect Japan's economy," the bank said.
Tuesday’s intervention by the Swiss National Bank to weaken the franc sparked concerns that safe haven inflows could shift to the yen, amid ongoing concerns over the outlook for global growth.
Earlier Wednesday, Japan’s Finance Minister Jun Azumi said he believed the yen was still overvalued, but stopped short of indicating that Japan would follow the SNB’s intervention, saying instead that he was watching market moves, including those by speculators.
The yen was almost unchanged against the euro, with EUR/JPY inching up 0.04% to hit 108.75.
Later in the day, Germany’s constitutional court was to hand down a ruling on the legality of the bailout for Greece. In addition, Federal Reserve Bank of Chicago President Charles Evans was to speak. The Fed was also to publish its beige book, which looks at regional economic conditions.