Forex - USD/JPY lower, eyes on BoJ policy meeting

Published 03/12/2012, 04:34 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar was lower against the yen on Monday, as investors sold the greenback to lock in profits but the yen remained under pressure ahead of the Bank of Japan’s monetary policy statement on Tuesday.

USD/JPY hit 82.11 during early European trade, the daily low; the pair subsequently consolidated at 82.15, shedding 0.40%.

The pair was likely to find support at 81.45, the low of March 9 and resistance at 82.63, the high of March 9.

Investors eyed the BOJ’s policy-setting meeting as the bank is expected to refrain from further policy easing while stressing its readiness to act again in coming months if needed and extending a cheap loan line supporting growth industries.

Earlier in the day, Japan's prime minister said that the yen remains overvalued despite its recent steep fall from historic peaks versus the U.S. dollar, while the country's finance minister reiterated a warning against speculative currency moves.

Also Monday, government data showed that core machinery orders in Japan rose more-than-expected in January, rising 3.4% after a 7.1% decline the previous month.

Analysts had expected core machinery orders to rise 1.9% in January.

Meanwhile, the greenback remained supported after the Department of Labor said on Friday that the U.S. economy added 227,000 jobs in February after increasing by a revised 284,000 the previous month.

The strong data diminished expectations for a fresh round of asset purchases by the Federal Reserve to help stimulate economic growth.

The yen was higher against the euro with EUR/JPY sliding 0.59%, to hit 107.59.

Later in the day, the U.S. was to publish government data on the federal budget balance.


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