Investing.com - The U.S. dollar edged higher against the yen on Wednesday, as markets were jittery ahead of comments by the European Central Bank and the Federal Reserve, while growing expectations for more easing measures by the Bank of Japan weighed on the yen.
USD/JPY hit 81.56 during late Asian trade, the pair’s highest since April 23; the pair subsequently consolidated at 81.38, adding 0.09%.
The pair was likely to find support at 80.96, the low of April 23 and resistance at 81.77, the high of April 20.
Investors were relieved when a successful auction sent yields on Dutch debt lower on Tuesday, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However, an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Markets were also jittery as a string of mixed U.S. data on consumer confidence, new home sales and home prices failed on Tuesday to paint a clear picture of the level of recovery of the world’s largest economy.
Meanwhile, the yen remained under pressure amid growing expectations that the BoJ will chose to implement further monetary easing at its next policy-setting meeting on Friday.
BoJ Governor Masaaki Shirakawa said at a meeting last week that central bank remains “committed” to monetary easing.
Elsewhere, the yen was steady against the euro with EUR/JPY edging 0.09% higher, to hit 107.40.
Later in the day, the U.S. was to publish government data on durable goods orders and crude oil stockpiles, while the Federal Reserve was to announce its benchmark interest rate and release its rate statement.
USD/JPY hit 81.56 during late Asian trade, the pair’s highest since April 23; the pair subsequently consolidated at 81.38, adding 0.09%.
The pair was likely to find support at 80.96, the low of April 23 and resistance at 81.77, the high of April 20.
Investors were relieved when a successful auction sent yields on Dutch debt lower on Tuesday, a day after the government in the Netherlands collapsed in a crisis over budget cuts.
However, an auction of Spanish short term government debt saw the country’s borrowing costs almost double, while Italy’s borrowing costs rose to the highest level since January after an auction of government bills.
Markets were also jittery as a string of mixed U.S. data on consumer confidence, new home sales and home prices failed on Tuesday to paint a clear picture of the level of recovery of the world’s largest economy.
Meanwhile, the yen remained under pressure amid growing expectations that the BoJ will chose to implement further monetary easing at its next policy-setting meeting on Friday.
BoJ Governor Masaaki Shirakawa said at a meeting last week that central bank remains “committed” to monetary easing.
Elsewhere, the yen was steady against the euro with EUR/JPY edging 0.09% higher, to hit 107.40.
Later in the day, the U.S. was to publish government data on durable goods orders and crude oil stockpiles, while the Federal Reserve was to announce its benchmark interest rate and release its rate statement.