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Forex – USD/JPY falls to daily low after Fed boost

Published 11/04/2010, 04:08 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar was down against the yen on Thursday, falling to a daily low following the Federal Reserves announcement of a second round of quantitative easing.

USD/JPY hit 80.74 during late Asian trade, the daily low; the pair subsequently consolidated at 80.95, shedding 0.14%.

The pair was likely to find support at 80.23, the low of November 1 and the all-time low and resistance at 81.97, the high of October 27.

Late Wednesday, the Fed said that it would buy USD 600 billion of U.S. government bonds over the next eight months in an effort to kick-start a "disappointingly slow" economic recovery. The bank also kept open the possibility of doing more if growth and inflation failed to rise in the coming months.

Following the announcement, Japan's deputy finance minister Mitsuru Sakurai said it was hard to judge the impact of U.S. easing on foreign exchange markets, which he said were fluctuating widely.

The yen was also up against the euro, with EUR/JPY slipping 0.01% to hit 114.57.

Later in the day, the U.S. was to publish key weekly data on initial jobless claims.

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