Investing.com - The U.S. dollar jumped to a three-week high against the yen on Tuesday, after the Bank of Japan unexpectedly announced further stimulus measures in order to bolster the country’s economy.
USD/JPY hit 78.08 during late Asian trade, the pair’s highest since January 25; the pair subsequently consolidated at 77.93, climbing 0.46%.
The pair was likely to find support at 77.28, the low of January 26 and resistance at 78.27, the high of January 25.
The BoJ eased policy earlier by adding JPY10 trillion to its asset-purchase program. The bank also set a 1% inflation target “for the time being” and stated that positive consumer-price growth would be defined as below 2% year-on-year.
Following the decision, Bank of Japan Governor Masaaki Shirakawa said that Japan's economy is headed towards a moderate recovery but the outlook remains highly uncertain.
Meanwhile, the greenback broadly rallied after Moody’s ratings agency cut the debt ratings of six European countries including Italy, Spain and Portugal earlier and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.23%, to hit 102.53.
Later in the day, the U.S. was to release official data on retail sales, as well as reports on import prices and business inventories.
USD/JPY hit 78.08 during late Asian trade, the pair’s highest since January 25; the pair subsequently consolidated at 77.93, climbing 0.46%.
The pair was likely to find support at 77.28, the low of January 26 and resistance at 78.27, the high of January 25.
The BoJ eased policy earlier by adding JPY10 trillion to its asset-purchase program. The bank also set a 1% inflation target “for the time being” and stated that positive consumer-price growth would be defined as below 2% year-on-year.
Following the decision, Bank of Japan Governor Masaaki Shirakawa said that Japan's economy is headed towards a moderate recovery but the outlook remains highly uncertain.
Meanwhile, the greenback broadly rallied after Moody’s ratings agency cut the debt ratings of six European countries including Italy, Spain and Portugal earlier and said it may strip France and the U.K. of their top Aaa ratings, citing the euro zone’s debt crisis.
Elsewhere, the yen was lower against the euro with EUR/JPY adding 0.23%, to hit 102.53.
Later in the day, the U.S. was to release official data on retail sales, as well as reports on import prices and business inventories.