Investing.com - The dollar dropped against the yen on Thursday as investors sold the greenback on anticipation the Federal Reserve will announce plans to stimulate the U.S. economy with easing measures that will weaken the U.S. currency.
In Asian trading on Thursday, USD/JPY was trading at 77.78, down 0.10%, up from a session low of 77.71 and off a high of 77.83.
The pair was likely to find support at 77.70, Tuesday's low, and resistance at 77.97, Wednesday's high.
The Federal Reserve wraps up a two-day monetary policy meeting later Thursday, and many market watchers are expecting the U.S. central bank to announce plans to jolt the economy with stimulus tools, likely a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and job demand.
Such accommodative policies, include two rounds of quantitative easing released since the 2008 financial crisis, tend to weaken the dollar by design.
Meanwhile in Japan, the government reported earlier that core machinery orders far exceeded expectations in July, climbing 4.6% after a 5.6% increase the previous month.
Analysts had expected core machinery orders to rise 1.5% in July.
Elsewhere in Japan, the country's tertiary industry activity index fell more than expected in July, according to official data.
The Japanese tertiary industry activity index fell to a seasonally adjusted -0.8%, from 0.2% in the preceding month whose figure was revised up from 0.1%.
Analysts had expected Japanese tertiary industry activity index to fall -0.4% last month.
Japan's corporate goods price index, meanwhile, fell less than expected in August.
The Bank of Japan reported that the country's Corporate Goods Price Index fell to a seasonally adjusted annual rate of -1.8%, from -2.1% in the preceding month.
Analysts had expected Japan’s Corporate Goods Price Index to fall -1.9% last month.
The yen, meanwhile was up against the pound and flat against the euro, with GBP/JPY down 0.04% and trading at 125.32 and EUR/JPY trading unchanged at 100.43.
All eyes will focus on the Federal Reserve later Thursday, with investors eager to see if the U.S. central bank unveils accommodative changes to monetary policy.
In Asian trading on Thursday, USD/JPY was trading at 77.78, down 0.10%, up from a session low of 77.71 and off a high of 77.83.
The pair was likely to find support at 77.70, Tuesday's low, and resistance at 77.97, Wednesday's high.
The Federal Reserve wraps up a two-day monetary policy meeting later Thursday, and many market watchers are expecting the U.S. central bank to announce plans to jolt the economy with stimulus tools, likely a third round of quantitative easing.
Under quantitative easing, the Fed buys assets such as Treasury holdings or mortgage-backed securities held by banks, pumping the economy full of fresh liquidity in a way that pushes down interest rates to encourage investing and job demand.
Such accommodative policies, include two rounds of quantitative easing released since the 2008 financial crisis, tend to weaken the dollar by design.
Meanwhile in Japan, the government reported earlier that core machinery orders far exceeded expectations in July, climbing 4.6% after a 5.6% increase the previous month.
Analysts had expected core machinery orders to rise 1.5% in July.
Elsewhere in Japan, the country's tertiary industry activity index fell more than expected in July, according to official data.
The Japanese tertiary industry activity index fell to a seasonally adjusted -0.8%, from 0.2% in the preceding month whose figure was revised up from 0.1%.
Analysts had expected Japanese tertiary industry activity index to fall -0.4% last month.
Japan's corporate goods price index, meanwhile, fell less than expected in August.
The Bank of Japan reported that the country's Corporate Goods Price Index fell to a seasonally adjusted annual rate of -1.8%, from -2.1% in the preceding month.
Analysts had expected Japan’s Corporate Goods Price Index to fall -1.9% last month.
The yen, meanwhile was up against the pound and flat against the euro, with GBP/JPY down 0.04% and trading at 125.32 and EUR/JPY trading unchanged at 100.43.
All eyes will focus on the Federal Reserve later Thursday, with investors eager to see if the U.S. central bank unveils accommodative changes to monetary policy.