Investing.com - The U.S. dollar edged lower against the yen on Thursday, but remained near six-week highs after the Bank of Japan left its monetary policy unchanged and as expectations for the Federal Reserve to soon begin tapering its stimulus program supported the greenback.
USD/JPY hit 99.58 during early European trade, the session low; the pair subsequently consolidated at 99.66, edging down 0.07%.
The pair was likely to find support at 98.35, the low of September 2 and resistance at 100.42, the high of July 25.
At the end of its two-day policy meeting, the BoJ said it will expand the monetary base at an annual pace of JPY60 trillion to JPY70 trillion, leaving policy unchanged.
The central bank also upgraded its assessment of the economy, saying a moderate recovery is underway.
Meanwhile, the dollar remained supported after upbeat U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve could start to phase out stimulus measures as soon as this month.
Investors were now looking ahead to Friday’s highly-anticipated U.S. nonfarm payrolls report which is seen as key to the Fed’s decision on tapering.
Elsewhere, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.
The yen was higher against the euro with EUR/JPY shedding 0.35%, to hit 131.25.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report on private sector job creation, as well as the weekly government report on initial jobless claims. In addition, the ISM was to release data on non-manufacturing activity in the U.S.
USD/JPY hit 99.58 during early European trade, the session low; the pair subsequently consolidated at 99.66, edging down 0.07%.
The pair was likely to find support at 98.35, the low of September 2 and resistance at 100.42, the high of July 25.
At the end of its two-day policy meeting, the BoJ said it will expand the monetary base at an annual pace of JPY60 trillion to JPY70 trillion, leaving policy unchanged.
The central bank also upgraded its assessment of the economy, saying a moderate recovery is underway.
Meanwhile, the dollar remained supported after upbeat U.S. manufacturing data on Tuesday reinforced expectations that the Federal Reserve could start to phase out stimulus measures as soon as this month.
Investors were now looking ahead to Friday’s highly-anticipated U.S. nonfarm payrolls report which is seen as key to the Fed’s decision on tapering.
Elsewhere, investors remained cautious after top congressional leaders, including Republican House Speaker John Boehner and Democrat Nancy Pelosi said they would back President Obama's call for military intervention in Syria.
The yen was higher against the euro with EUR/JPY shedding 0.35%, to hit 131.25.
Later in the day, the U.S. was to release the ADP nonfarm payrolls report on private sector job creation, as well as the weekly government report on initial jobless claims. In addition, the ISM was to release data on non-manufacturing activity in the U.S.