Investing.com - The U.S. dollar hit a four-month high against the broadly weaker yen on Thursday, amid mounting speculation over the possibility of more easing by the Bank of Japan at its upcoming policy meeting.
USD/JPY hit 80.19 during European morning trade, the pair’s highest since June 25; the pair subsequently consolidated at 80.11, gaining 0.39%.
The pair was likely to find support at 79.75, the session low and resistance at 80.61, the high of June 25.
The yen came under broad selling pressure amid expectations that the BoJ will ease monetary policy in order to support the faltering economy at its policy meeting next Tuesday.
Meanwhile, the Federal Reserve said Wednesday that some aspects of the U.S. economy were improving, but added that some help was still needed to bolster growth.
In its rate statement, the Fed said the U.S. economy is improving moderately, but said job growth has been slow and the unemployment rate remains elevated.
The central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
The yen was sharply lower against the euro, with EUR/JPY advancing 0.68% to 104.21.
Later Thursday, the U.S. was to release official data on durable goods orders, as well as reports on pending home sales and initial jobless claims.
USD/JPY hit 80.19 during European morning trade, the pair’s highest since June 25; the pair subsequently consolidated at 80.11, gaining 0.39%.
The pair was likely to find support at 79.75, the session low and resistance at 80.61, the high of June 25.
The yen came under broad selling pressure amid expectations that the BoJ will ease monetary policy in order to support the faltering economy at its policy meeting next Tuesday.
Meanwhile, the Federal Reserve said Wednesday that some aspects of the U.S. economy were improving, but added that some help was still needed to bolster growth.
In its rate statement, the Fed said the U.S. economy is improving moderately, but said job growth has been slow and the unemployment rate remains elevated.
The central bank also said it planned to keep its benchmark short-term rate close to zero through mid-2015.
The yen was sharply lower against the euro, with EUR/JPY advancing 0.68% to 104.21.
Later Thursday, the U.S. was to release official data on durable goods orders, as well as reports on pending home sales and initial jobless claims.