Investing.com - The U.S. dollar is trading lower against the Japanese yen in Thursday’s Asian session following several Japanese data points and on concerns the country’s recently announce monetary stimulus efforts will be the last for awhile.
In Asian trading Thursday, USD/JPY is lower by 0.16% at 99.66. The pair was likely to find resistance at 100.73, the high from April 13, 2009, and support at 98.92, the earlier low.
On Wednesday, Bank of Japan Governor Haruhiko Kuroda signaled that there may not be any additional stimulus measures by the bank in the coming months.
Kuroda said the BoJ has taken all of the measures “necessary” and “possible” to achieve the 2% inflation target in two years.
In Japanese economic data out today, BoJ said that Japan’s M2 Money Stock rose 3% last month following a 2.9% increase in February. Analysts expected a march increase of 2.9%. In another report, the Economic and Social Research Institute said that Japan’s core machinery orders rose 7.5% in March following a 13.1% decline in February. Analysts expected a March increase of 6.8%.
BoJ said that Japan’s Corporate Goods Price Index fell to a seasonally adjusted -0.5% last month from -0.1% in February. Analysts expected the index to fall to -0.4% last month.
Still, USD/JPY is hovering near four-year highs and some traders believe it will only be a matter of days before the pair touches 100.
If that level is breached, a wave of buying could hit because options traders have amassed sizable bets that USD/JPY will not touch 100. If the pair crosses that level, options sellers will be forced to buy dollars to cover the options they sold.
Elsewhere, EUR/JPY is down 0.29% to 130.05 while AUD/JPY is lower by 0.21% at 105.05. NZD/JPY is off 0.11% at 85.54.
In Asian trading Thursday, USD/JPY is lower by 0.16% at 99.66. The pair was likely to find resistance at 100.73, the high from April 13, 2009, and support at 98.92, the earlier low.
On Wednesday, Bank of Japan Governor Haruhiko Kuroda signaled that there may not be any additional stimulus measures by the bank in the coming months.
Kuroda said the BoJ has taken all of the measures “necessary” and “possible” to achieve the 2% inflation target in two years.
In Japanese economic data out today, BoJ said that Japan’s M2 Money Stock rose 3% last month following a 2.9% increase in February. Analysts expected a march increase of 2.9%. In another report, the Economic and Social Research Institute said that Japan’s core machinery orders rose 7.5% in March following a 13.1% decline in February. Analysts expected a March increase of 6.8%.
BoJ said that Japan’s Corporate Goods Price Index fell to a seasonally adjusted -0.5% last month from -0.1% in February. Analysts expected the index to fall to -0.4% last month.
Still, USD/JPY is hovering near four-year highs and some traders believe it will only be a matter of days before the pair touches 100.
If that level is breached, a wave of buying could hit because options traders have amassed sizable bets that USD/JPY will not touch 100. If the pair crosses that level, options sellers will be forced to buy dollars to cover the options they sold.
Elsewhere, EUR/JPY is down 0.29% to 130.05 while AUD/JPY is lower by 0.21% at 105.05. NZD/JPY is off 0.11% at 85.54.