Investing.com - The U.S. dollar moved lower against the Japanese yen in Asian Wednesday, as dealers await the outcome of a meeting of U.S. Federal Reserve officials and possible signs of further steps from the Fed to boost the ailing economy.
In mid-day Asian trade USD/JPY hit 76.12, the pair’s lowest since August 19; the pair subsequently consolidated at 76.36, falling 0.12%.
The pair was likely to find support at 75.97, the low of August 19, and resistance at 77.58 last Monday’s high.
The U.S. Federal Reserve’s Open Market Committee began its two-day policy meeting where market watchers expect the Fed to opt for a move known as “Operation Twist,” a combination of buying and selling of shorter and longer term Treasury bonds in order the bend the yield curve.
Wall Street shares traded in negative territory for much of the Tuesday session before closing mixed. The Dow Jones Industrial Average edged up 0.07%, while the Nasdaq Composite Index gave up 0.86%, and the S&P 500 shed 0.17%.
Elsewhere, Japan’s Ministry of Finance reported Wednesday that the nation’s trade deficit widened in August with exports rising 2.8% for the month while imports surged by 19.2%.
The increase in exports, while below market expectations, was the first gain for the monthly figure since the March 11 earthquake.
Meanwhile, the yen moved lower against the euro but up against the British pound with EUR/JPY up 0.02% to hit 104.75, and GBP/JPY falling 0.14% to hit 120.10.
The U.S. Federal Reserve was to conclude its two-day Federal Open Market Committee meeting later Wednesday.