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Forex - USD/JPY edges higher amid Fed speculation

Published 08/25/2011, 04:13 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar edged higher against the yen on Thursday, firming up as speculation continued over what if any measures Federal Reserve Chairman Ben Bernanke may outline to bolster the U.S. economy.

USD/JPY hit 77.23 during late Asian trade, the pair’s highest since August 11; the pair subsequently consolidated at 77.02, easing up 0.08%.

The pair was likely to find support at 76.29, the low of August 11 and resistance at 77.85, the high of August 9.

Investors were concerned that Fed Chair Bernanke would not point to another round of bond-buying at the central bank’s conference on Friday, after data on Wednesday showed that U.S. durable goods orders rose the most in four months in July, while core durable goods orders rose unexpectedly.

The yen was also lower against the euro, with EUR/JPY rising 0.46% to hit 111.46.

On Wednesday, Japan unveiled a two-pronged approach aimed at curbing the appreciation of the yen, creating a credit line to promote foreign investment and imposing new rules on companies’ foreign exchange holdings.

The initiative disappointed investors as it focused on strategies to cope with persistent yen strength and reduced the risk of further intervention to weaken the yen.

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