Investing.com - The dollar strengthened against the yen on Wednesday after the Bank of Japan said the country won't meet previous economic growth forecasts.
USD/JPY hit 77.96 in Asian trading on Wednesday, up 0.38% and up from a session low of 77.62 and off from a high of 77.98.
The pair sought to test support at 76.87, Monday's low, and resistance at 77.98, the earlier Wednesday high.
The Bank of Japan cut its fiscal 2012 growth forecast to 2.0% from a previous forecast made in October for 2.2% growth
Furthermore, the bank kept benchmark borrowing rights unchanged, while everyone in the country is keeping a close eye on the debt crisis in Europe, a key export market.
“The BOJ sees European credit crunch as the biggest risk," said Naka Matsuzawa, chief investment strategist at Nomura Securities in Tokyo, according to Bloomberg.
The yen, meanwhile, was down against the euro as well as the pound, with EUR/JPY rising 0.26% to 101.52 and GBP/JPY gaining 0.33% at 121.77.
The Federal Reserve Open Market Committee will unveil its decision on interest rates later Wednesday.
Investors are also awaiting U.K. GDP data and mortgage approvals as well as the Bank of England's meeting minutes.
In the U.S., housing market data, crude oil stockpiles will hit the wire, although the Federal Reserve will serve as the market's chief steering current.
In other news, the World Economic Forum will take place in Davos, Switzerland.
USD/JPY hit 77.96 in Asian trading on Wednesday, up 0.38% and up from a session low of 77.62 and off from a high of 77.98.
The pair sought to test support at 76.87, Monday's low, and resistance at 77.98, the earlier Wednesday high.
The Bank of Japan cut its fiscal 2012 growth forecast to 2.0% from a previous forecast made in October for 2.2% growth
Furthermore, the bank kept benchmark borrowing rights unchanged, while everyone in the country is keeping a close eye on the debt crisis in Europe, a key export market.
“The BOJ sees European credit crunch as the biggest risk," said Naka Matsuzawa, chief investment strategist at Nomura Securities in Tokyo, according to Bloomberg.
The yen, meanwhile, was down against the euro as well as the pound, with EUR/JPY rising 0.26% to 101.52 and GBP/JPY gaining 0.33% at 121.77.
The Federal Reserve Open Market Committee will unveil its decision on interest rates later Wednesday.
Investors are also awaiting U.K. GDP data and mortgage approvals as well as the Bank of England's meeting minutes.
In the U.S., housing market data, crude oil stockpiles will hit the wire, although the Federal Reserve will serve as the market's chief steering current.
In other news, the World Economic Forum will take place in Davos, Switzerland.