Investing.com - The U.S. dollar rose to a five-year end against the U.S. dollar on Monday, amid improving risk sentiment before the year end and growing expectations for the Bank of Japan to implement fresh stimulus measures.
USD/JPY hit 105.42 during late Asian trade, the pair's highest since September 2008; the pair subsequently consolidated at 105.37, rising 0.19%.
The pair was likely to find support at 104.65, the low of December 27 and resistance at 106.52.
The greenback remained supported amid expectations of further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Meanwhile, the yen continued to weaken amid speculation the BoJ will have to expand its stimulus program in the coming months in order to meet its target of 2% inflation by 2015.
Minutes of the BoJ’s November policy meeting last week showed that that not all board members were convinced that the country’s growth was on a long-term upward trend. Investors also reacted to comments made by BoJ Governor Haruhiko Kuroda, who said that the nation’s economy hadn’t yet completely wiped out deflation.
The yen was also lower against the euro, with EUR/JPY adding 0.22% to 144.86.
Later in the day, the U.S. was to release industry data on pending home sales.
USD/JPY hit 105.42 during late Asian trade, the pair's highest since September 2008; the pair subsequently consolidated at 105.37, rising 0.19%.
The pair was likely to find support at 104.65, the low of December 27 and resistance at 106.52.
The greenback remained supported amid expectations of further stimulus tapering by the Federal Reserve. The U.S. central bank will start reducing its bond-buying stimulus program by USD10 billion a month in January, amid indications of an improving U.S. economy.
Meanwhile, the yen continued to weaken amid speculation the BoJ will have to expand its stimulus program in the coming months in order to meet its target of 2% inflation by 2015.
Minutes of the BoJ’s November policy meeting last week showed that that not all board members were convinced that the country’s growth was on a long-term upward trend. Investors also reacted to comments made by BoJ Governor Haruhiko Kuroda, who said that the nation’s economy hadn’t yet completely wiped out deflation.
The yen was also lower against the euro, with EUR/JPY adding 0.22% to 144.86.
Later in the day, the U.S. was to release industry data on pending home sales.