Forex - USD/JPY gains on BoJ easing measures

Published 02/14/2012, 10:04 PM
Updated 02/14/2012, 10:06 PM
USD/JPY
-
EUR/JPY
-
AUD/JPY
-
Investing.com - The dollar gained against the yen on Wednesday after the Bank of Japan took measures to water down demand for its currency and halt its strengthening trend.

In Asian trading on Wednesday, USD/JPY hit 78.52, up 0.10%, up from a session low of 78.36 and off from a high of 78.66.

The pair was likely to find support at 77.04, Thursday's low, and resistance at 78.66, the earlier session high.

The Bank of Japan added JPY10 trillion to an asset-purchase program and set an inflation goal as a move to halt the currency's strengthening trend.

The move won market applause.

"The yen is retreating and the world is moving toward more monetary easing as shown by the BOJ, supporting equities," said Hiroichi Nishi, an equities manager in Tokyo at SMBC Nikko Securities, according to Bloomberg.

The yen, meanwhile, was down against both the euro and the Australian dollar, with EUR/JPY gaining 0.26% to 103.29 and AUD/JPY gaining 0.42% at 84.22

Later Wednesday, the U.S. is to release a report on the Empire State Manufacturing index, a leading indicator of economic health, followed by data on net foreign purchases of long-term securities.

The Federal Reserve is set to publish data on its capacity utilization rate, an important indicator of consumer inflation, as well as on industrial production before releasing the minutes of its latest policy meeting later in the day.

The U.S. will also unveil data on its crude oil and gasoline inventories.

Australia, meanwhile, will release unemployment data.




Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.