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Forex - USD/JPY falls as yen rebounds from 5-year lows

Published 12/13/2013, 01:11 PM
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Investing.com - The dollar fell against the yen on Friday despite growing expectations for the Federal Reserve to begin scaling back its USD85 billion monthly asset-purchasing program as early as next week.

Bottom fishing sent the yen posting gains against the dollar on Friday after hitting 5-year lows recently.

In U.S. trading on Friday, USD/JPY was trading at 103.24, down 0.13%, up from a session low of 102.99 and off a high of 103.92.

The pair was likely to find support at 102.18, Wednesday's low, and resistance at 103.66, Wednesday's high.

The dollar hit highs against the yen not seen since October of 2008 recently on growing expectations or the Fed to begin tapering its monthly asset purchases, which keep the dollar weak to spur recovery by driving down borrowing costs.

Bargain hunters snapped up nicely priced yen positions despite solid U.S. wholesale pricing data.

The Labor Department reported earlier that the U.S. producer price index fell 0.1% last month, in line with expectations, after a 0.2% decline in October.

Core producer price inflation, which excludes food and energy, rose 0.1% in November after a 0.2% increase the previous month, also in line with consensus forecasts.

Investors interpreted the data as another cue to prompt the Fed to begin tapering its USD85 billion a month asset purchase program at its Dec. 17-18 policy meeting or in early 2014.

The yen was up against the pound and up against the euro, with GBP/JPY down 0.49% and trading at 168.20 and EUR/JPY trading down 0.38% at 141.67.










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