Investing.com - The dollar continued to slide against the yen on Wednesday, as investors sold the greenback now that the Federal Reserve has begun stimulating the U.S. economy with its long anticipated third round of quantitative easing.
The Bank of Japan is set to address monetary policy and may announce plans to stimulate its economy later Wednesday, though investors remained on the sidelines before an official announcement comes.
In Asian trading on Wednesday, USD/JPY was trading at 78.64, down 0.22%, up from a session low of 78.60 and off a high of 78.77.
The pair was likely to find support at 78.49, Tuesday's low, and resistance at 78.87, Tuesday's high.
The Federal Reserve late last week announced plans to buy USD40 billion in mortgage-backed securities a month from banks in an ongoing basis until the economy improves and job demand grows, a policy measure known as quantitative easing, which weakens the dollar to spur recovery and job demand.
Now that the Fed is underway buying assets from banks, the dollar weakened against the yen, though an announcement from the Bank of Japan that it will roll out stimulus measures of its own could quickly reverse that trend.
The Japan is tentatively scheduled to announce its latest monetary policy decision later Wednesday.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.26% and trading at 127.70 and EUR/JPY trading down 0.28% at 102.55.
The Bank of Japan is set to address monetary policy and may announce plans to stimulate its economy later Wednesday, though investors remained on the sidelines before an official announcement comes.
In Asian trading on Wednesday, USD/JPY was trading at 78.64, down 0.22%, up from a session low of 78.60 and off a high of 78.77.
The pair was likely to find support at 78.49, Tuesday's low, and resistance at 78.87, Tuesday's high.
The Federal Reserve late last week announced plans to buy USD40 billion in mortgage-backed securities a month from banks in an ongoing basis until the economy improves and job demand grows, a policy measure known as quantitative easing, which weakens the dollar to spur recovery and job demand.
Now that the Fed is underway buying assets from banks, the dollar weakened against the yen, though an announcement from the Bank of Japan that it will roll out stimulus measures of its own could quickly reverse that trend.
The Japan is tentatively scheduled to announce its latest monetary policy decision later Wednesday.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.26% and trading at 127.70 and EUR/JPY trading down 0.28% at 102.55.