Investing.com – The U.S. dollar jumped sharply higher against the yen on Monday, after Japanese officials stepped in to the foreign exchange market for the third time this year, selling an undisclosed amount of yen.
USD/JPY hit 79.53 during late Asian trade, the pair’s highest since August 4; the pair subsequently consolidated at 78.79, jumping 3.92%.
The pair was likely to find support at 77.85, the high of September 9 and resistance at 79.52, the day’s high and a three-month high.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The move came after the Bank of Japan expanded its credit and asset-purchase programs to a total of JPY55 trillion on Thursday, in an attempt to weaken the persistently strong currency.
Japanese officials have warned repeatedly that they may act to curtail the appreciation of the yen, which is threatening Japan’s largely export driven economy.
The yen was also sharply lower against the euro, with EUR/JPY soaring 3.11% to hit 110.62.
Later Monday, the U.S. was to release data on manufacturing activity in the Chicago area.
USD/JPY hit 79.53 during late Asian trade, the pair’s highest since August 4; the pair subsequently consolidated at 78.79, jumping 3.92%.
The pair was likely to find support at 77.85, the high of September 9 and resistance at 79.52, the day’s high and a three-month high.
Earlier Monday, Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early trade.
Japanese Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
The move came after the Bank of Japan expanded its credit and asset-purchase programs to a total of JPY55 trillion on Thursday, in an attempt to weaken the persistently strong currency.
Japanese officials have warned repeatedly that they may act to curtail the appreciation of the yen, which is threatening Japan’s largely export driven economy.
The yen was also sharply lower against the euro, with EUR/JPY soaring 3.11% to hit 110.62.
Later Monday, the U.S. was to release data on manufacturing activity in the Chicago area.