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Forex - USD/JPY little changed as Fed meeting eyed

Published 04/30/2013, 03:12 AM
USD/JPY
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EUR/JPY
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Investing.com - The dollar was steady against the yen on Tuesday as investors awaited the outcome of Wednesday’s Federal Reserve policy meeting for cues on the direction of monetary policy.

USD/JPY hit 97.67 during late Asian trade, the session low; the pair subsequently consolidated at 97.82, inching up 0.07%.

The pair was likely to find support at 97.20, the low of April 17 and resistance at 98.70, the high of April 15.

The dollar remained under pressure after data last week showed that the U.S. economy grew more slowly than expected in the first quarter, adding to concerns over the outlook for the economic recovery.

The data dampened expectations for an earlier than expected end to the bank’s asset purchase program after recent Fed minutes showed that policymakers are divided over the benefits of ongoing monetary easing.

The dollar rallied to four-year lows against the yen earlier this month after the Bank of Japan unveiled unprecedented monetary easing measures at its April 4 policy meeting, but failed to breach the key psychological 100 per yen level.

Elsewhere, the yen was little changed against the yen, with EUR/JPY dipping 0.08% to 127.95.

Sentiment on the single currency remained fragile ahead of an upcoming European Central Bank policy meeting on Thursday, amid speculation over an interest rate cut.

Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.



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