Investing.com - The dollar was steady against the yen on Thursday, remaining close to lows hit in the previous session after data showed that the U.S. economy slowed sharply in the first quarter.
USD/JPY was trading at 102.22, after falling to lows of 102.02 on Wednesday.
The pair was likely to find support at 101.95, the low of April 25 and resistance at 102.65, Wednesday’s high.
The dollar weakened against most other major currencies on Wednesday after the Commerce Department reported that gross domestic product grew at an annual rate of 0.1% in the first three months of the year, well below forecasts for an expansion of 1.2%.
Despite the sharp slowdown in growth the Federal Reserve said Wednesday it would reduce its bond purchases to $45 billion a month, in a widely expected decision. The Fed also said interest rates would remain on hold at record lows for a "considerable time" after the bond-buying program ends later this year.
The U.S. central bank acknowledged that first quarter growth was far weaker than expected, but added that growth had started to pick up in recent weeks.
"Growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions," the bank said.
Investors were beginning to turn their attention to the April nonfarm payrolls report due for release on Friday, which was expected to show that the recovery in the labor market was continuing.
The pair showed little reaction after official data on Thursday showed that China’s manufacturing purchasing managers’ index ticked up to 50.4 in April from 50.3 in the previous month, but exports orders declined sharply, adding to concerns over a slowdown in the world’s second largest economy.
The dollar was at three-week lows against the euro, with EUR/USD up 0.13% to 1.3884.
Elsewhere, the euro was slightly higher against the yen, with EUR/JPY edging up to 141.90 from 141.73 on Wednesday.