Investing.com – Due to an obvious lack of headlines to move the pair in either direction, the dollar is trading lower against the yen in Wednesday’s Asian session.
In Asian trading Wednesday, USD/JPY is off 0.15% at 93.16. The pair was likely to find support at 92.44, the low of March 1 and resistance at 94.30, the high of February 25.
The yen gained strength against the greenback despite comments made by PIMCO’s Bill Gross on Tuesday. In a media interview, Gross, manager of the world’s largest bond fund, said USD/JPY is likely to trade to 100 as the Bank of Japan takes further action to weaken the yen.
Additional easing by BoJ would not be surprising. If anything, it is widely expected. On Tuesday, Asian Development Bank President Haruhiko Kuroda, Prime Minister Shinzo Abe’s nominee to be the next Bank of Japan governor, said that if confirmed as BoJ leader, he would do everything in his power to reverse years of Japanese deflation.
The dollar retreated against the Japanese currency despite a solid data point delivered yesterday in the world’s largest economy. In U.S. economic news, the Institute for Supply Management said its February purchasing managers index rose to 56% from 55.2% in January. Economists expected the February reading to be unchanged from the prior month. The index has risen for 39 consecutive months.
Elsewhere, EUR/JPY fell 0.03% to 121.72. The pair is likely to test support at 121.13, Monday's low, and resistance at 121.98, Monday's high. EUR/JPY traders will soon be focusing on monetary policy announcements from the European Central Bank and BoJ on Thursday.
An announcement by BoJ regarding immediate easing may be a surprise to traders, which are not expecting those headlines until after the central bank’s April meeting, the first under new leadership.
Elsewhere, AUD/JPY rose 0.23% to 95.91 while NZD/JPY added 0.14% to 77.64.
In Asian trading Wednesday, USD/JPY is off 0.15% at 93.16. The pair was likely to find support at 92.44, the low of March 1 and resistance at 94.30, the high of February 25.
The yen gained strength against the greenback despite comments made by PIMCO’s Bill Gross on Tuesday. In a media interview, Gross, manager of the world’s largest bond fund, said USD/JPY is likely to trade to 100 as the Bank of Japan takes further action to weaken the yen.
Additional easing by BoJ would not be surprising. If anything, it is widely expected. On Tuesday, Asian Development Bank President Haruhiko Kuroda, Prime Minister Shinzo Abe’s nominee to be the next Bank of Japan governor, said that if confirmed as BoJ leader, he would do everything in his power to reverse years of Japanese deflation.
The dollar retreated against the Japanese currency despite a solid data point delivered yesterday in the world’s largest economy. In U.S. economic news, the Institute for Supply Management said its February purchasing managers index rose to 56% from 55.2% in January. Economists expected the February reading to be unchanged from the prior month. The index has risen for 39 consecutive months.
Elsewhere, EUR/JPY fell 0.03% to 121.72. The pair is likely to test support at 121.13, Monday's low, and resistance at 121.98, Monday's high. EUR/JPY traders will soon be focusing on monetary policy announcements from the European Central Bank and BoJ on Thursday.
An announcement by BoJ regarding immediate easing may be a surprise to traders, which are not expecting those headlines until after the central bank’s April meeting, the first under new leadership.
Elsewhere, AUD/JPY rose 0.23% to 95.91 while NZD/JPY added 0.14% to 77.64.