Investing.com - The U.S. dollar edged lower against the yen on Friday, after the Bank of Japan decided to hold its monetary policy, while U.S. budget troubles continued to weigh on demand for the greenback.
USD/JPY hit 96.96 during early European trade, the session low; the pair subsequently consolidated at 97.14, slipping 0.12%.
The pair was likely to find support at 95.98, the low of August 12 and resistance at 98.08, the high of October 2.
The yen found support after the BoJ refrained from adding to its monetary stimulus program and as Japan Prime Minister Shinzo Abe said the economy was strong enough to weather a sales-tax increase.
Meanwhile, the sentiment on the dollar remained weak as investors continued to weigh the implications of a protracted U.S. government shutdown.
On Thursday, disappointing U.S. service sector data added to concerns that the shutdown in Washington could have wider consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from a reading of 58.6 in August. Analysts had expected the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report for September will not be released as scheduled on Friday due to the government shutdown. It said a new release date had not been set.
Investors were also considering how the U.S. political deadlock will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine Lagarde said the failure to raise the U.S. debt ceiling could hurt the global economy and warned U.S. growth could drop below 2% this year.
The yen was fractionally higher against the euro with EUR/JPY easing 0.08%, to hit 132.35.
USD/JPY hit 96.96 during early European trade, the session low; the pair subsequently consolidated at 97.14, slipping 0.12%.
The pair was likely to find support at 95.98, the low of August 12 and resistance at 98.08, the high of October 2.
The yen found support after the BoJ refrained from adding to its monetary stimulus program and as Japan Prime Minister Shinzo Abe said the economy was strong enough to weather a sales-tax increase.
Meanwhile, the sentiment on the dollar remained weak as investors continued to weigh the implications of a protracted U.S. government shutdown.
On Thursday, disappointing U.S. service sector data added to concerns that the shutdown in Washington could have wider consequences on the U.S. economy.
The Institute of Supply Management said its non-manufacturing purchasing manager's index fell to a three-month low of 54.4 in September from a reading of 58.6 in August. Analysts had expected the index to decline to 57.4 last month.
The U.S. Labor Department on Thursday said the employment report for September will not be released as scheduled on Friday due to the government shutdown. It said a new release date had not been set.
Investors were also considering how the U.S. political deadlock will impact negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Speaking overnight, International Monetary Fund head Christine Lagarde said the failure to raise the U.S. debt ceiling could hurt the global economy and warned U.S. growth could drop below 2% this year.
The yen was fractionally higher against the euro with EUR/JPY easing 0.08%, to hit 132.35.