Forex - USD/JPY edges down to hit daily low

Published 11/08/2010, 04:08 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar was lower against the yen on Monday, easing down to a daily low after the Bank of Japan said that there were signs of a moderate recovery in Japan’s economy.

USD/JPY hit 81.12 during early European trade, the daily low; the pair subsequently consolidated at 81.15, shedding 0.15%.

The pair was likely to find short-term support at 80.61, last Friday’s low and resistance at 81.97, the high of October 27.

Earlier in the day, the BOJ said in its November economic report that the nation's economic recovery "seems to be pausing" although there are still "signs of a moderate recovery," adopting a slightly weaker tone than in the central bank's October report.

"Japan's economy is likely to grow at a slower pace for some time, but is expected to return to a moderate recovery path thereafter," the report said.

Last week, BOJ policy makers voted to hold the benchmark interest rate steady in a range of 0.0%-0.1% and finalized an asset purchase plan to stimulate the economy.

The yen was also up against the euro, with EUR/JPY tumbling 0.78% to hit 113.14.

Also Monday, official data showed that Japan's coincident composite index, which reflects current business conditions, fell a preliminary 1.3 points to 102.0 in August, posting the first monthly drop in 19 months.

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