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Forex - USD/JPY hits 2-day low as BOJ hold steady on policy

Published 10/28/2010, 04:23 AM
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Investing.com – The U.S. dollar fell to a  to a 2-day low against the yen on Thursday, after the Bank of Japan held its benchmark interest rate steady but moved the date of its next policy meeting up to just after the next meeting of Federal Reserve policy makers.

USD/JPY hit 81.23 during European morning trade, the pair’s lowest since October 26; the pair subsequently consolidated at 81.35, shedding 0.51%.

The pair was likely to find support at 80.61, the low of October 26 and resistance at 81.97, Wednesday’s high.

Earlier in the day, the Bank of Japan kept its benchmark interest rate unchanged in a range of 0.0% to 0.1%, in line with expectations. The bank said it moved its meeting to November 4-5 from mid-November to speed up the roll-out of a JPY 5-trillion asset buying plan, which the bank unveiled early this month.

The BOJ made no mention of the Federal Reserve November 2-3 rate review but the move sparked speculation that the BOJ wanted to be able to act quickly in the event of further yen gains.

The yen was also up against the euro, with EUR/JPY shedding 0.23% to hit 112.32.

Also Thursday, official data showed that Japanese retail sales rose significantly less-than-expected in September, rising at the slowest pace this year.

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