Forex - USD/JPY gains on BoJ policy, Greece deal

Published 02/17/2012, 04:04 PM
Updated 02/17/2012, 04:10 PM
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Investing.com - The dollar rose against the yen on Friday as investors shorted the Japanese currency in wake of a Bank of Japan announcement it would take steps to weaken the unit as well as on growing sentiment Greece will receive long-awaited bailout money.
 
In U.S. trading on Friday, USD/JPY hit 79.55, up 0.78%, also a session high, and up from a low of 78.80.
 
The pair sought to test technical support at 79.39, and resistance at 79.58.
 
A strong yen has been a bane for Japan's vital export industry, and earlier this week, the Bank of Japan said it would allocate JPY10 trillion to an asset-purchase program and set an inflation goal as a move to weaken the currency.
 
Meanwhile in Europe, hopes that European leaders are close to granting debt-ridden Greece access to a EUR130 billion bailout fund sparked demand for stocks and other riskier assets worldwide, which further sent the yen falling.
 
The yen, meanwhile, was down against the Australian dollar as well as the euro, with AUD/JPY gaining 0.34% to 85.17 and EUR/JPY up 0.90% at 104.57.
 
All eyes will focus on Europe over the weekend and on Monday, as hints that Greece will receive its long-awaited aid package will serve as the currency market's main weather vane.
 
On Monday, the Reserve Bank of Australia will release the minutes of its latest monetary policy meeting.
 
Japanese trade balance figures out due out on Monday as well.

Monday is a holiday in the U.S.
 




  Forex - USD/JPY gains on BoJ policy
 
Investing.com - The dollar rose against the yen on Friday as investors shorted the Japanese currency in wake of a Bank of Japan announcement it would take steps to weaken its currency as well as on growing sentiment Greece will receive long-awaited bailout money.
 
In U.S. trading on Friday, USD/JPY hit 79.55, up 0.78%  and also a session high, up from a low of 78.80.
 
The pair sought to test technical support at 79.39, and resistance at 79.58.
 
A strong yen has been a bane for Japan's vital export industry, and earlier this week, the Bank of Japan said it would allocate JPY10 trillion to an asset-purchase program and set an inflation goal as a move to weaken the currency.
 
Meanwhile in Europe, hopes that European leaders are close to granting debt-ridden Greece access to a EUR130 billion bailout fund, which sparked demand for stocks and other riskier assets worldwide, which further sent the yen falling.
 
The yen, meanwhile, was down against the Australian dollar as well as the euro, with AUD/JPY gaining 0.34% to 85.17 and EUR/JPY up 0.90% at 104.57.
 
All eyes will focus on Europe over the weekend and on Monday, as hints that Greece will receive its long-awaited aid package will serve as the currency market's main weather vane.
 
On Monday, the Reserve Bank of Australia will release the minutes of its latest monetary policy meeting.
 
Monday is a holiday in the U.S.
 
 

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