Investing.com - The dollar dropped against the yen on Friday after Federal Reserve Chairman Ben Bernanke said he could not rule out the use of monetary stimulus tools to spur more robust recovery
In U.S. trading on Friday, USD/JPY was trading at 78.33, down 0.39%, up from a session low of 78.20 and off a high of 78.61.
The pair was likely to find support at 78.20, the earlier low, and resistance at 78.61, the earlier high.
Bernanke said in his speech at the Fed's annual symposium in Jackson Hole, Wyoming, that the Fed remains ready to intervene with stimulus though the speech made no mention for more specific plans.
Monetary stimulus tools tend to weaken the dollar by design, pushing down interest rates and sending stock prices rising as well.
"The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant," Bernanke said in prepared remarks at his speech.
"Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
Elsewhere in the U.S. the final reading for the Thomson Reuters/University of Michigan consumer sentiment index came to 74.3 in August, up from analysts' calls for 73.6, the preliminary reading for August and also July's final reading.
Also in the U.S., the Chicago PMI fell more than expected in July, data showed on Friday.
In a report, research group Kingsbury International said that the Chicago PMI fell to a seasonally adjusted 53.0, from 53.7 in the preceding month.
Analysts had expected the Chicago PMI to fall to 53.5 last month.
Meanwhile in Japan, housing starts fell 9.6% on year in July, better than market fears for a contraction of 9.9%.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.11% and trading at 124.26 and EUR/JPY up 0.07% and trading at 98.41.
In U.S. trading on Friday, USD/JPY was trading at 78.33, down 0.39%, up from a session low of 78.20 and off a high of 78.61.
The pair was likely to find support at 78.20, the earlier low, and resistance at 78.61, the earlier high.
Bernanke said in his speech at the Fed's annual symposium in Jackson Hole, Wyoming, that the Fed remains ready to intervene with stimulus though the speech made no mention for more specific plans.
Monetary stimulus tools tend to weaken the dollar by design, pushing down interest rates and sending stock prices rising as well.
"The costs of nontraditional policies, when considered carefully, appear manageable, implying that we should not rule out the further use of such policies if economic conditions warrant," Bernanke said in prepared remarks at his speech.
"Over the past five years, the Federal Reserve has acted to support economic growth and foster job creation, and it is important to achieve further progress, particularly in the labor market. Taking due account of the uncertainties and limits of its policy tools, the Federal Reserve will provide additional policy accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."
Elsewhere in the U.S. the final reading for the Thomson Reuters/University of Michigan consumer sentiment index came to 74.3 in August, up from analysts' calls for 73.6, the preliminary reading for August and also July's final reading.
Also in the U.S., the Chicago PMI fell more than expected in July, data showed on Friday.
In a report, research group Kingsbury International said that the Chicago PMI fell to a seasonally adjusted 53.0, from 53.7 in the preceding month.
Analysts had expected the Chicago PMI to fall to 53.5 last month.
Meanwhile in Japan, housing starts fell 9.6% on year in July, better than market fears for a contraction of 9.9%.
The yen was down against the pound and down against the euro, with GBP/JPY up 0.11% and trading at 124.26 and EUR/JPY up 0.07% and trading at 98.41.