Forex - USD/JPY dips as Sandy dissipates, BoJ move disappoints

Published 10/30/2012, 09:50 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar softened against the yen on Wednesday as investors crept out of the safety of the U.S. currency where they holed up as nasty post-tropical storm Sandy lashed the U.S.

The country was still assessing widespread damage, though many investors who rode out the storm in the safe-harbor greenback sold to play an eventual recovery.

Markets shrugged off a Bank of Japan move to expand its easing program.

In Asian trading on Wednesday, USD/JPY was trading at 79.56, down 0.08%, up from a session low of 79.55 and off a high of 79.68.

The pair was likely to find support at 79.28, Tuesday's low, and resistance at 80.10, Tuesday's high.

Hurricane Sandy morphed into a post-tropical giant and roared ashore along the New Jersey coast on Monday, lashing the heavily populated northeastern U.S. with heavy rains, high winds and a deadly storm surge.

Markets were closed for a second day in the U.S. on Tuesday, though investors who bought dollars prior to the storm's landfall began to loosen up by Asian trading on Wednesday, selling
their dollars to play recovery, which weakened the greenback against its Japanese counterpart.

Meanwhile, the Bank of Japan decided to expand its asset-purchasing program to JPY91 trillion from JPY80 trillion to further stimulate the economy, though investors shrugged off the amount and sold greenbacks in exchange for safe-harbor yen.

The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.02% and trading at 127.96 and EUR/JPY trading down 0.03% at 103.16.

Later Wednesday in the U.S., payroll processing firm ADP is to release a report on nonfarm payrolls, a leading indicator of private-sector job creation.

The U.S. is also to publish official data on manufacturing activity in Chicago.

Japan is due to release data on housing starts.









Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.