Investing.com - The dollar fell against the yen on Monday after the U.S. Federal Reserve last week announced plans to stimulate the U.S. economy with a third round of quantitative easing.
The dollar rose against the yen on Friday despite the news, as Japan hinted it may follow suit with easing of its own, though eventually the greenback softened against the Japanese currency as investors braced for Fed intervention.
In Asian trading on Monday, USD/JPY was trading at 78.31, down 0.11%, up from a session low of 78.30 and off a high of 78.36.
The pair was likely to find support at 77.52, Friday's low, and resistance at 79.02, the high from Sept. 7.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing, which weakens the dollar to spur recovery and job demand.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of further keeping interest rates low.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
The move sent the dollar plunging against most other currencies and stocks gaining, though the greenback held firm against the yen last week on reports that Finance Minister Jun Azumi said Japan may be ready to take steps to further weaken the yen.
By Asian trading on Monday, however, the greenback began to fall against its Japanese counterpart as investors took up positions preparing for Fed intervention that will weaken the dollar.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.06% and trading at 127.03 and EUR/JPY trading down 0.22% at 102.72.
The dollar rose against the yen on Friday despite the news, as Japan hinted it may follow suit with easing of its own, though eventually the greenback softened against the Japanese currency as investors braced for Fed intervention.
In Asian trading on Monday, USD/JPY was trading at 78.31, down 0.11%, up from a session low of 78.30 and off a high of 78.36.
The pair was likely to find support at 77.52, Friday's low, and resistance at 79.02, the high from Sept. 7.
The Federal Reserve on Thursday announced plans to buy USD40 billion in mortgage-backed securities a month from banks on an ongoing basis until the economy improves, a policy measure known as quantitative easing, which weakens the dollar to spur recovery and job demand.
The Fed also said it would continue with its Operation Twist program that sees the U.S. central bank selling short-term Treasury holdings in the market while simultaneously buying longer-term instruments with the aim of further keeping interest rates low.
The Fed also said conditions meriting low interest rates will likely last through mid-2015.
The move sent the dollar plunging against most other currencies and stocks gaining, though the greenback held firm against the yen last week on reports that Finance Minister Jun Azumi said Japan may be ready to take steps to further weaken the yen.
By Asian trading on Monday, however, the greenback began to fall against its Japanese counterpart as investors took up positions preparing for Fed intervention that will weaken the dollar.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.06% and trading at 127.03 and EUR/JPY trading down 0.22% at 102.72.