Investing.com - The U.S. dollar was almost unchanged against the yen on Thursday, as markets were jittery ahead of a highly anticipated European Central Bank policy meeting, while investors awaited the release of key U.S. economic data later in the day.
USD/JPY hit 78.47 during early European trade, the daily high; the pair subsequently consolidated at 78.41, inching up 0.02%.
The pair was likely to find support at 78.17, the low of August 31 and resistance at 78.65, the high of August 8.
Investors remained cautious ahead of the ECB’s monetary policy meeting later Thursday, amid expectations that the central bank is set to announce more details of measures to help stabilize the region’s sovereign debt markets.
Central bank sources said earlier that the ECB is ready to waive seniority status on government bonds it buys under a new program which it is set to be approved at the upcoming meeting.
Such a step could help encourage private investors to buy debts of troubled countries, as that would mean the ECB would have to bear some of the burden of any losses should a country default.
Meanwhile, markets were also eyeing the release of U.S. data for further indications on the strength of the country’s economic recovery, as comments by Federal Reserve Chairman Ben Bernanke last week fueled expectations for fresh stimulus measures in the near future.
Separately, the yen came under pressure after Bank of Japan Governor Masaaki Shirakawa said earlier that the strong yen has a big negative impact on the country's exports, corporate profits and business sentiment.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.14%, to hit 98.91.
Later in the day, the U.S. was to release a report on ADP non-farm employment payrolls, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.
USD/JPY hit 78.47 during early European trade, the daily high; the pair subsequently consolidated at 78.41, inching up 0.02%.
The pair was likely to find support at 78.17, the low of August 31 and resistance at 78.65, the high of August 8.
Investors remained cautious ahead of the ECB’s monetary policy meeting later Thursday, amid expectations that the central bank is set to announce more details of measures to help stabilize the region’s sovereign debt markets.
Central bank sources said earlier that the ECB is ready to waive seniority status on government bonds it buys under a new program which it is set to be approved at the upcoming meeting.
Such a step could help encourage private investors to buy debts of troubled countries, as that would mean the ECB would have to bear some of the burden of any losses should a country default.
Meanwhile, markets were also eyeing the release of U.S. data for further indications on the strength of the country’s economic recovery, as comments by Federal Reserve Chairman Ben Bernanke last week fueled expectations for fresh stimulus measures in the near future.
Separately, the yen came under pressure after Bank of Japan Governor Masaaki Shirakawa said earlier that the strong yen has a big negative impact on the country's exports, corporate profits and business sentiment.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.14%, to hit 98.91.
Later in the day, the U.S. was to release a report on ADP non-farm employment payrolls, followed by weekly government data on unemployment claims. The country was also to release a report by the Institute for Supply Management on service sector activity.