Forex - USD/JPY moves lower, re-approaching 15-year low

Published 10/20/2010, 04:21 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar was down against the yen on Wednesday, re-approaching a 15-year low as market focus returned to the prospect of further monetary easing by the Federal Reserve.

USD/JPY hit 81.20 during European morning trade, a daily low; the pair subsequently consolidated at 81.26, shedding 0.39%.

The pair was likely to find support at 80.87, last Friday’s low and a 15-year low and resistance at 82.55, the high of October 8.

Earlier in the day, Bank of Japan deputy governor Kiyohiko Nishimura said the strong yen could erode corporate sentiment and lower consumer prices, exacerbating deflation and restricting economic growth.

“The fact that the recent appreciation of the yen is deteriorating business sentiment” is a “big factor in putting downward pressure on economic activity,” Nishimura said. He added that the bank will continue to pursue “strong” monetary policy measures and stands ready to take appropriate monetary action.

Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.17% to hit 112.17.

Later in the day, the Federal Reserve was to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.

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