Investing.com - The U.S. dollar climbed to a more than three-month high against the yen on Thursday, after the Bank of Japan expanded its asset purchase program and after the minutes of the Federal Reserve’s January policy setting meeting.
USD/JPY hit 78.73 during late Asian trade, the pair’s highest since November 1; the pair subsequently consolidated at 78.71, adding 0.35%.
The pair was likely to find support at 78.17, the low of February 15 and resistance at 78.98, the high of November 1.
The yen remained under pressure after the BoJ unexpectedly announced Tuesday that it would increase the size of its asset-purchase program by JPY10 trillion in an attempt to boost growth and protect the economy from the effects of the strong yen.
The dollar also found support after the minutes of the Federal Reserve’s January policy meeting showed that policymakers were divided about whether to launch fresh easing measures to shore up growth, but were still actively considering such a move.
Meanwhile, concerns over a delay in a second bailout for Greece persisted following reports that the euro zone is examining ways of holding back parts or even all of the country’s bailout program until after elections in April while still ensuring it avoids a default.
Elsewhere, the yen was fractionally higher against the euro with EUR/JPY edging down 0.09%, to hit 102.41.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.
USD/JPY hit 78.73 during late Asian trade, the pair’s highest since November 1; the pair subsequently consolidated at 78.71, adding 0.35%.
The pair was likely to find support at 78.17, the low of February 15 and resistance at 78.98, the high of November 1.
The yen remained under pressure after the BoJ unexpectedly announced Tuesday that it would increase the size of its asset-purchase program by JPY10 trillion in an attempt to boost growth and protect the economy from the effects of the strong yen.
The dollar also found support after the minutes of the Federal Reserve’s January policy meeting showed that policymakers were divided about whether to launch fresh easing measures to shore up growth, but were still actively considering such a move.
Meanwhile, concerns over a delay in a second bailout for Greece persisted following reports that the euro zone is examining ways of holding back parts or even all of the country’s bailout program until after elections in April while still ensuring it avoids a default.
Elsewhere, the yen was fractionally higher against the euro with EUR/JPY edging down 0.09%, to hit 102.41.
Later in the day, the U.S. was to publish official data on building permits and on housing starts, as well as reports on producer price inflation and unemployment claims. Federal Reserve Chairman Ben Bernanke was also due to speak.