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Forex - USD/JPY falls on talk BoJ may hold off on monetary stimulus

Published 08/06/2012, 09:15 PM
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Investing.com - The dollar traded lower against the yen on Tuesday after a series of solid global indicators and ensuing stock-market rallies sparked talk the Bank of Japan will hold off on further easing measures.

In Asian trading on Tuesday, USD/JPY hit 78.20, down 0.06%, up from a session low of 78.16 and off a high of 78.22.

The pair was likely to find support at 78.15, the low from Aug. 6, and resistance at 78.30, the high of July 31.

The Bank of Japan is currently holding a monetary policy meeting and is due to announce its decision on interest rates on Thursday.

Stronger-than-expected jobs numbers out of the U.S. plus talk the European Central Bank and the Federal Reserve will stimulate their economies to spur recovery may give the Bank of Japan room to hold off on easing policy at home.

The Bank of Japan moved earlier this year to stimulate its economy though growth may be picking up on its own to allow monetary policy authorities to stand down.

The yen was up against the pound and up against the euro, with GBP/JPY down 0.23% and trading at 121.81 and EUR/JPY down 0.16% and trading at 96.88.

Later Tuesday, Federal Reserve Chairman Ben Bernanke is to speak at an event in Washington, D.C.








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