NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - USD/JPY drops on talk BoJ will hold off on stimulus

Published 07/11/2012, 09:16 PM
Updated 07/11/2012, 09:17 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar traded lower against the yen in Asian trading on Thursday on sentiment the Bank of Japan will decide later during the day not to make major changes to monetary policy and halt the yen's gains.

In Asian trading on Thursday, USD/JPY hit 79.62, down 0.17%, up from a session low of 79.57 and off a high of 79.64.

The pair was likely to find support at 79.48, the low from July 9, and resistance at 80.02, the high from July 6.

The Bank of Japan is to hold a monetary policy meeting later Thursday, and markets are widely expecting the monetary authority to make no changes to its policies, especially stimulus programs, which sent the yen rising against the greenback.

The U.S. dollar, meanwhile, was lower amid profit taking after soaring in the U.S. session on news the Federal Reserve is no more willing to stimulate the economy via easing measures than in recent months.

The Federal Reserve said in the minutes of its most recent monetary policy meeting that it will stand guard for now and intervene later should the economy take a turn for the worse, but made no specific hint that easing is becoming increasingly likely or not.

The yen was up against the pound and up against the euro, with GBP/JPY down 0.12% and trading at 123.49 and EUR/JPY down 0.20% and trading at 97.43.

After the Bank of Japan releases its statement on interest rates and monetary policy, the bank may hold a press conference afterwards.

The U.S. will release government data on unemployment claims and figures on import prices, followed by the monthly Treasury statement.









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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.