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Forex - Dollar little changed vs. yen before Fed

Published 05/01/2013, 03:06 AM
USD/JPY
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EUR/JPY
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Investing.com - The dollar was almost unchanged against the yen on Wednesday as investors awaited the outcome of the Federal Reserve’s policy meeting later in the day.

USD/JPY hit 97.06 during late Asian trade, the session low; the pair subsequently consolidated at 97.45, inching up 0.05%.

The pair was likely to find support at 96.34, the low of April 15 and resistance at 98.19, the high of April 29.

The dollar remained under pressure after recent soft U.S. economic data saw investors trim back expectations for an earlier-than-expected end to the Fed’s asset purchase program.

Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.

The data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth.

Trade volumes remained light during the Asian session with most markets closed for holidays, while many bourses in Europe were set to remain shut for the Labor Day holiday.

The pair showed little reaction after official data showed that China’s manufacturing purchasing managers' index ticked down to 50.6 in April from an 11-month high of 50.9 in March.

The yen was steady against the euro, with EUR/JPY edging up 0.07% to 128.35.

Later Wednesday, the U.S. was to release data on ADP nonfarm payrolls, while the Institute of Supply Management was to publish its report on manufacturing activity.



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