Investing.com - The dollar slipped lower against the yen on Monday, as uncertainty over the direction of Federal Reserve policy weighed, following last week’s surprise decision to announce no reduction to its USD85 billion-a-month stimulus program.
USD/JPY hit 98.91 during late Asian trade, the lowest since Thursday; the pair subsequently consolidated at 99.04, sliding 0.33%.
The pair was likely to find support at 98.53, the low of September 6 and resistance at 99.66, Friday’s high.
The dollar remained under pressure after the Fed said it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting the U.S. central bank to cut its USD85 billion-a-month stimulus program by USD10 billion to USD15 billion.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
Elsewhere, the euro was lower against the yen, with EUR/JPY sliding 0.19% to 134.10.
The euro remained supported after German Chancellor Angela Merkel's conservative party won Germany’s elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.
Data released on Monday showed that manufacturing activity in France contracted at the fastest pace in three-months in September, while activity in the services sector expanded for the first time in 19 months.
USD/JPY hit 98.91 during late Asian trade, the lowest since Thursday; the pair subsequently consolidated at 99.04, sliding 0.33%.
The pair was likely to find support at 98.53, the low of September 6 and resistance at 99.66, Friday’s high.
The dollar remained under pressure after the Fed said it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting the U.S. central bank to cut its USD85 billion-a-month stimulus program by USD10 billion to USD15 billion.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
Elsewhere, the euro was lower against the yen, with EUR/JPY sliding 0.19% to 134.10.
The euro remained supported after German Chancellor Angela Merkel's conservative party won Germany’s elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.
Data released on Monday showed that manufacturing activity in France contracted at the fastest pace in three-months in September, while activity in the services sector expanded for the first time in 19 months.