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Forex - USD/JPY dips as market view yen as attractively priced

Published 04/22/2013, 02:02 PM
Updated 04/22/2013, 02:03 PM
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Investing.com - The dollar fell against the yen on Monday after the Japanese currency found support after G20 policymakers voiced no opposition to the Bank of Japan's stimulus measures at a recent meeting.

The yen fell earlier amid sentiments Japanese monetary authorities may increase stimulus measures, though the unit eventually found support after U.S. housing data disappointed earlier.

In U.S. trading on Monday, USD/JPY was trading at 99.34, down 0.19%, up from a session low of 98.98 and off a high of 99.89.

The pair was likely to find resistance at 99.89, the earlier high, and support at 98.98, the earlier low.

The yen dropped earlier after G20 officials voiced no opposition to Japan's shift to more aggressive monetary easing policies, which sparked sentiments the Bank of Japan has room to loosen policy even further.

Japan has insisted its monetary policy aims to steer the country away from deflationary decline and not to weaken its currency for trade advantages.

The yen, however, found support levels and regained its strength against the greenback, especially after U.S. housing figures disappointed.

The National Association of Realtors reported earlier that U.S. existing home sales fell 0.6% to 4.92 million units in March compared to February’s revised total of 4.95 million.

February existing home sales initially came in at 4.98 million units.

Analysts were expecting U.S. existing home sales to rise to 5.01 million units in March.

The figures fueled talk that the Federal Reserve won't rush to dismantle its bond-buying program and other stimulus tools already in place, which took steam out of the greenback.
 
The yen, meanwhile was flat against the pound and up against the euro, with GBP/JPY unchanged at 151.56 and EUR/JPY trading down 0.28% at 129.53.

On Tuesday, the U.S. will unveil official data on new home sales as well as preliminary data on manufacturing activity.









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