Investing.com – The dollar slipped against the yen on Thursday, as investors locked in profits following the dollar’s recent rally; however the yen’s gains were limited amid expectations that the Bank of Japan would lag the Federal Reserve in raising interest rates.
USD/JPY hit 82.57 during early European trade, the daily low; the pair subsequently consolidated at 82.81, slipping 0.09%.
The pair was likely to find short-term support at 82.35, Wednesday’s low and resistance at 83.20, the day’s high and a three-week high.
The yen has been weakened by expectations that the massive earthquake on March 11 and ongoing worries over the crippled Fukushima Daiichi nuclear power plant could force the BoJ to hold rates at ultra-low levels to support the world's third-largest economy as it recovers from the effects of the earthquake.
Meanwhile, the yen was lower against the euro, with EUR/JPY rising 0.28% to hit 117.43.
Also Thursday, Bank of America-Merrill Lynch said that Tokyo Electric Power Company could face compensation claims in excess of USD130 billion if Japan's nuclear crisis continues, fuelling expectations Japan's government will step in to save Asia's largest utility.
USD/JPY hit 82.57 during early European trade, the daily low; the pair subsequently consolidated at 82.81, slipping 0.09%.
The pair was likely to find short-term support at 82.35, Wednesday’s low and resistance at 83.20, the day’s high and a three-week high.
The yen has been weakened by expectations that the massive earthquake on March 11 and ongoing worries over the crippled Fukushima Daiichi nuclear power plant could force the BoJ to hold rates at ultra-low levels to support the world's third-largest economy as it recovers from the effects of the earthquake.
Meanwhile, the yen was lower against the euro, with EUR/JPY rising 0.28% to hit 117.43.
Also Thursday, Bank of America-Merrill Lynch said that Tokyo Electric Power Company could face compensation claims in excess of USD130 billion if Japan's nuclear crisis continues, fuelling expectations Japan's government will step in to save Asia's largest utility.