Investing.com – The U.S. dollar was up against the yen on Wednesday, trading close to a three-week high, after a senior Federal Reserve official indicated that the central bank may curtail its quantitative easing program.
USD/JPY hit 83.14 during early European trade, the pair’s highest since March 11; the pair subsequently consolidated at 83.06, surging 0.71%.
The pair was likely to find support at 81.53, Tuesday’s low and resistance at 83.52, the high of February 22.
On Tuesday, Federal Reserve Bank of Dallas President Richard Fisher said in an interview with Fox Business that he did not support further liquidity provision from the U.S. central bank and didn't expect the Fed to launch a third program of asset purchases.
His comments came after St. Louis Fed chief James Bullard said that the central bank could trim its USD600 billion bond-buying program by USD100 billion.
Meanwhile, the yen was weighed by expectations that the massive earthquake on March 11 and ongoing worries over the crippled Fukushima Daiichi nuclear power plant could force the Bank of Japan to hold rates at ultra-low levels for a long period.
The yen was also lower against the euro, with EUR/JPY rising 0.61% to hit 117.11.
Later in the day, the U.S. was to publish a report on private sector employment by payroll processing firm ADP.
USD/JPY hit 83.14 during early European trade, the pair’s highest since March 11; the pair subsequently consolidated at 83.06, surging 0.71%.
The pair was likely to find support at 81.53, Tuesday’s low and resistance at 83.52, the high of February 22.
On Tuesday, Federal Reserve Bank of Dallas President Richard Fisher said in an interview with Fox Business that he did not support further liquidity provision from the U.S. central bank and didn't expect the Fed to launch a third program of asset purchases.
His comments came after St. Louis Fed chief James Bullard said that the central bank could trim its USD600 billion bond-buying program by USD100 billion.
Meanwhile, the yen was weighed by expectations that the massive earthquake on March 11 and ongoing worries over the crippled Fukushima Daiichi nuclear power plant could force the Bank of Japan to hold rates at ultra-low levels for a long period.
The yen was also lower against the euro, with EUR/JPY rising 0.61% to hit 117.11.
Later in the day, the U.S. was to publish a report on private sector employment by payroll processing firm ADP.