Investing.com - Financial Markets Worldwide

Forex - USD/JPY continues to surge

Published 04/07/2013, 10:00 PM
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Investing.com - On the heels of a stunning rally seen last week, the U.S. dollar is again soaring against the Japanese yen during Monday’s Asian session.

In Asian trading Monday, USD/JPY is up 0.95% at 98.46 after earlier trading as high 98.85, the highest level in nearly four years. The pair is likely to find support at 95.73, Friday’s low and resistance at 98.88, the high of June 5, 2009.

The yen dropped more than 3% against the dollar on Thursday after the Bank of Japan said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.

Traders also ditched the yen following the current account deficit report. Earlier today, the Ministry of Finance said that Japan’s current account balance for the first quarter was JPY637.4 billion, well above the JPY457.5 billion median estimate.

Along with the greenback, other major currencies have surged against the yen in recent days as BoJ, under the stewardship of new Governor Haruhiko Kuroda, plans to expand its asset purchase program to JPY7 trillion per month and include 10-year government bonds, real estate investment trusts and exchange trade funds.

BoJ will publish the minutes from last week’s monetary policy meeting tomorrow. On Thursday, Japan will publish official data on core machinery orders and on Friday, the country will release official data on tertiary industry activity.

With recent action in USD/JPY it could be just a matter of time before the pair reaches 100, a price level last seen in April 2009. Some traders have said the pair could see 102-103 later this month.

Elsewhere, EUR/JPY is up 0.80% at 127.85 while AUD/JPY jumped 0.72% to 102.08. NZD/JPY rose 0.61% to 82.77.


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