Investing.com - The U.S. dollar erased gains against the yen on Thursday, pulling away from a four-day high after the Bank of Japan refrained from implementing further easing measures, though it did slightly tweak is asset-buying and lending program.
USD/JPY pulled back from 79.96, the pair’s highest since July 6, to hit 79.31 during early European trade, declining 0.55%.
The pair was likely to find support at 78.83, the low of June 18 and resistance at 80.01, the high of July 6.
In a widely expected move, the BoJ left its benchmark interest rate unchanged, close to zero, and held off on further monetary easing measures, stating that domestic demand will keep Japan’s economic recovery on track.
The bank did however reshuffle the composition of its JPY70 trillion stimulus program to buy more short-term securities and reduce the amount offered in fixed-rate market operations.
The announcement came after the Federal Reserve indicated earlier that the U.S. economy would have to worsen further before the central bank implements additional easing measures, lending broad support to the greenback.
In the minutes of its June policy-setting meeting, the U.S. central bank signaled that a further economic slowdown would bring growing support among policy makers for additional steps to spur growth.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY dropping 0.68%, to hit 96.97.
Later in the day, the BoJ was to hold a press conference about its earlier monetary policy decisions, while the U.S. was to release government data on unemployment claims and official data on import prices.
USD/JPY pulled back from 79.96, the pair’s highest since July 6, to hit 79.31 during early European trade, declining 0.55%.
The pair was likely to find support at 78.83, the low of June 18 and resistance at 80.01, the high of July 6.
In a widely expected move, the BoJ left its benchmark interest rate unchanged, close to zero, and held off on further monetary easing measures, stating that domestic demand will keep Japan’s economic recovery on track.
The bank did however reshuffle the composition of its JPY70 trillion stimulus program to buy more short-term securities and reduce the amount offered in fixed-rate market operations.
The announcement came after the Federal Reserve indicated earlier that the U.S. economy would have to worsen further before the central bank implements additional easing measures, lending broad support to the greenback.
In the minutes of its June policy-setting meeting, the U.S. central bank signaled that a further economic slowdown would bring growing support among policy makers for additional steps to spur growth.
While a few policymakers said the bank should ease policy to move the economy toward its targets for full employment and stable prices, others indicated that more action could be warranted if growth slows, risks intensified or if inflation seemed likely to fall “persistently” below their goal.
Elsewhere, the yen was sharply higher against the euro with EUR/JPY dropping 0.68%, to hit 96.97.
Later in the day, the BoJ was to hold a press conference about its earlier monetary policy decisions, while the U.S. was to release government data on unemployment claims and official data on import prices.