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Forex - USD/JPY rises on BoJ easing policy

Published 03/02/2012, 03:44 PM
Updated 03/02/2012, 03:55 PM
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Investing.com - The dollar rose against the yen on Friday, buoyed by sentiment the U.S. economy is gaining steam, while the Bank of Japan's announced easing measures designed to weaken the currency were bearing fruit.

In U.S. trading on Friday, USD/JPY hit 81.85, up 0.91%  up from a low of 81.09 and off a high of 81.87.

The pair sought to test technical support at 81.46 and resistance at 82.09.

The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency as well as tweak inflation policies.

Such easing measures worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.

Meanwhile the U.S. economy appears to be improving.

Federal Reserve Chairman Ben Bernanke suggested earlier this week that the country does not need further monetary easing measures to kick-start the economy at this time, comments that sent the dollar rising.

Japan's unemployment rate, meanwhile, crept up to 4.6% in January, slightly higher than expected, the government reported Thursday.

The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY gaining 0.17% to 129.65 and EUR/JPY up 0.08% at 108.07.

On Monday, the U.S. Institute of Supply Management will release its Non-Manufacturing Purchasing Managers' Index, while in Japan, the government will release average cash earnings figures.





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