Investing.com - The U.S. dollar traded higher against the Japanese yen during Thursday’s Asian session, snapping out of a lull that saw the greenback trade down against the yen earlier in the day.
In Asian trading Thursday, USD/JPY rose 0.57% to 99.00 after earlier trading as low as 98.27. The pair was likely to find support at 97.77, Wednesday's low, and resistance at 99.67, Friday's high.
The yen had gained some strength against the greenback in recent days because of its safe-have appeal during times of market uncertainty. Traders embraced the yen amid lingering uncertainty about the medium-term future of the Federal Reserve’s USD85 billion-per-month quantitative easing program.
The Federal Reserve surprised markets last week by opting not to taper its quantitative easing program, but the commentary from some Fed members in the days since paints a conflicting picture of when tapering will actually come to pass.
Some market observers believe tapering will arrive next month. Some think it happen by December and others believe it will start next year. Under either scenario, the lingering uncertainty could continue to pressure riskier assets.
Prime Minister Shinzo Abe’s plan to raise sales tax in Japan also remains in focus. Next week’s tankan survey from the Bank of Japan is seen as crucial to Abe’s plan to push through the tax hike. Abe is looking to raise the sales tax to 8% from 5%, but he will not proceed with that measure if the world’s third-largest economy is not showing signs of improvement.
If Japan’s consumption tax is increased it will be the first time since 1997.
Elsewhere, AUD/JPY rose 0.40% to 92.59 while EUR/JPY climbed 0.45% to 133.75.
In Asian trading Thursday, USD/JPY rose 0.57% to 99.00 after earlier trading as low as 98.27. The pair was likely to find support at 97.77, Wednesday's low, and resistance at 99.67, Friday's high.
The yen had gained some strength against the greenback in recent days because of its safe-have appeal during times of market uncertainty. Traders embraced the yen amid lingering uncertainty about the medium-term future of the Federal Reserve’s USD85 billion-per-month quantitative easing program.
The Federal Reserve surprised markets last week by opting not to taper its quantitative easing program, but the commentary from some Fed members in the days since paints a conflicting picture of when tapering will actually come to pass.
Some market observers believe tapering will arrive next month. Some think it happen by December and others believe it will start next year. Under either scenario, the lingering uncertainty could continue to pressure riskier assets.
Prime Minister Shinzo Abe’s plan to raise sales tax in Japan also remains in focus. Next week’s tankan survey from the Bank of Japan is seen as crucial to Abe’s plan to push through the tax hike. Abe is looking to raise the sales tax to 8% from 5%, but he will not proceed with that measure if the world’s third-largest economy is not showing signs of improvement.
If Japan’s consumption tax is increased it will be the first time since 1997.
Elsewhere, AUD/JPY rose 0.40% to 92.59 while EUR/JPY climbed 0.45% to 133.75.