Investing.com - The U.S. dollar was trading close to an 11-month peak against the yen on Thursday, fuelled by expectations for further monetary easing by the Bank of Japan and an improving outlook for the U.S. economy.
USD/JPY hit 84.18 during early European trade, the pair’s highest since April 13, 2011; the pair subsequently consolidated at 83.79, gaining 0.08%.
The pair was likely to find support at 82.87, Wednesday’s high and resistance at 84.77, the high of April 12, 2011.
The greenback has strengthened since the Federal Reserve upgraded its outlook on the U.S. economy on Tuesday, causing investors to trims back expectations for a third round of quantitative easing by the central bank.
Meanwhile, the yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier this week, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
The yen was also lower against the euro, with EUR/JPY easing up 0.10% to hit 109.22.
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.
USD/JPY hit 84.18 during early European trade, the pair’s highest since April 13, 2011; the pair subsequently consolidated at 83.79, gaining 0.08%.
The pair was likely to find support at 82.87, Wednesday’s high and resistance at 84.77, the high of April 12, 2011.
The greenback has strengthened since the Federal Reserve upgraded its outlook on the U.S. economy on Tuesday, causing investors to trims back expectations for a third round of quantitative easing by the central bank.
Meanwhile, the yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier this week, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
The yen was also lower against the euro, with EUR/JPY easing up 0.10% to hit 109.22.
Later in the day, the U.S. was to release government data on producer price inflation, as well as official data on unemployment claims. The country was also to produce reports on manufacturing activity in New York and Philadelphia.