Investing.com – The U.S. dollar was up against the yen for the second day on Wednesday, rising to hit a 2-week high amid expectations that a second round of quantitative easing by the Federal Reserve would be more gradual than expected.
USD/JPY hit 81.98 during European morning trade, the pair’s highest since October 12; the pair subsequently consolidated at 81.89, gaining 0.55%.
The pair was likely to find support at 80.61, Tuesday’s low and resistance at 82.55, the high of October 8.
Late Tuesday, a report in the Wall Street Journal said that the Fed was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, in contrast to purchases worth almost USD 2 trillion the bank made during the financial crisis.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
The yen was also down against the euro, with EUR/JPY gaining 0.24% to hit 113.14.
On Tuesday, Japan’s Finance Minister Yoshihiko Noda said that exchange rate moves were “one-sided” after the currency fell to 80.41; it’s lowest since April 1995. He added that the Japanese government was paying "grave attention" to market developments.
USD/JPY hit 81.98 during European morning trade, the pair’s highest since October 12; the pair subsequently consolidated at 81.89, gaining 0.55%.
The pair was likely to find support at 80.61, Tuesday’s low and resistance at 82.55, the high of October 8.
Late Tuesday, a report in the Wall Street Journal said that the Fed was likely to unveil a program of U.S. Treasury bond purchases worth a few hundred billion dollars over several months, in contrast to purchases worth almost USD 2 trillion the bank made during the financial crisis.
The report said that the bank favored an approach that allowed them to adjust policy as the economic recovery unfolded, with the ability to make more purchases in the future if necessary. The report was contrary to rising market expectations of purchases in excess of USD 1 trillion.
The yen was also down against the euro, with EUR/JPY gaining 0.24% to hit 113.14.
On Tuesday, Japan’s Finance Minister Yoshihiko Noda said that exchange rate moves were “one-sided” after the currency fell to 80.41; it’s lowest since April 1995. He added that the Japanese government was paying "grave attention" to market developments.