Investing.com - The U.S. dollar was almost unchanged near 22-month lows against its the yen on Friday, as the Bank of Japan’s decision to hold its monetary policy continued to lend broad support to the local currency, while the Federal Reserve’s inaction still weighed on the greenback.
USD/JPY hit 104.10 during U.S. morning trade, the session low; the pair subsequently consolidated at 104.26.
The pair was likely to find support at 103.55, Thursday’s low and a 22-month low and resistance at 105.88, Thursday’s high.
The yen strengthened against the dollar after BoJ officials voted on Thursday to continue expanding the monetary base at an annual rate of about ¥80 billion.
At the conclusion of its monetary policy meeting on Thursday, the BoJ also flagged the EU referendum on June 23 as a key geopolitical threat to the Japanese economy, along with the “European debt problem”.
The decision came after the Fed also cited the referendum as a factor in its decision on Wednesday to keep interest rates on hold.
The dollar had already weakened against the other major currencies when the Fed kept rates unchanged and lowered forecasts for how much they expect to hike interest rates in the next few years.
The greenback also remained under pressure after mixed U.S. housing data failed to boost optimism over the strength of the economy.
The U.S. Commerce Department said on Friday that housing starts declined 0.3% to 1.164 million units last month from April’s total of 1.167 million units, a downward revision from the initial 1.172 million. Analysts had expected an decrease to 1.150 million in May.
Meanwhile, the number of building permits issued increased by 0.7% to 1.138 million units from 1.130 million. Economists had forecast a rise to 1.150 million units in May.
The data came a day after reports showed that the number of individuals filing for initial jobless benefits in the week ending June 11 rose more-than-expected, while U.S. consumer prices rose less than anticipated last month.
The yen was lower against the euro, with EUR/JPY gaining 0.38% to 117.51.