Investing.com - The U.S. dollar is trading slightly low against the Japanese during Wednesday’s Asian session as traders digested some economic data and turned an eye toward Friday’s Bank of Japan meeting.
In Asian trading Tuesday, USD/JPY fell 0.02% to 99.46. The pair was likely to find support at 98.09, Friday’s low and resistance at 99.87, Monday’s high and an almost four-year high.
The yen rose against the greenback after the Bank Of Japan said that Japan’s corporate services price index fell less-than-expected last month. Japan’s CSPI fell to -0.2% last month from 0% in March. Analysts expected Japan’s CSPI to fall to -0.4% last month.
Traders in yen-related pairs will now turn their attention to Friday’s BoJ meeting. Earlier this month, new BoJ Governor Haruhiko Kuroda unveiled a new batch of stimulus measures aimed at engineering inflation in Japan, weakening the yen and propping up the world’s third-largest economy.
The rub with new monetary stimulus measures, particularly as far as Japan is concerned, is that every time BoJ meets, traders will expect gifts courtesy of Kuroda. As it is, traders are expecting the central bank will increase its outlook on consumer-price gains excluding fresh food to 1.5% from 0.9%.
At the behest of Prime Minister Shinzo Abe, BoJ is targeting an inflation rate of 2%.
Elsewhere, EUR/JPY fell 0.08% to 129.24. The pair sought to test support at 125.00, the low from April 15, and resistance at 130.67, Monday' high.
NZD/JPY added 0.35% to 83.83 after the Reserve Bank of New Zealand left the country’s benchmark interest rate unchanged at 2.5%.
AUD/JPY dropped 0.17% to 101.91 after the Australian Bureau of Statistics said the country’s CPI rose 0.4% in the first quarter. Analysts expected an increase of 0.6%.
In Asian trading Tuesday, USD/JPY fell 0.02% to 99.46. The pair was likely to find support at 98.09, Friday’s low and resistance at 99.87, Monday’s high and an almost four-year high.
The yen rose against the greenback after the Bank Of Japan said that Japan’s corporate services price index fell less-than-expected last month. Japan’s CSPI fell to -0.2% last month from 0% in March. Analysts expected Japan’s CSPI to fall to -0.4% last month.
Traders in yen-related pairs will now turn their attention to Friday’s BoJ meeting. Earlier this month, new BoJ Governor Haruhiko Kuroda unveiled a new batch of stimulus measures aimed at engineering inflation in Japan, weakening the yen and propping up the world’s third-largest economy.
The rub with new monetary stimulus measures, particularly as far as Japan is concerned, is that every time BoJ meets, traders will expect gifts courtesy of Kuroda. As it is, traders are expecting the central bank will increase its outlook on consumer-price gains excluding fresh food to 1.5% from 0.9%.
At the behest of Prime Minister Shinzo Abe, BoJ is targeting an inflation rate of 2%.
Elsewhere, EUR/JPY fell 0.08% to 129.24. The pair sought to test support at 125.00, the low from April 15, and resistance at 130.67, Monday' high.
NZD/JPY added 0.35% to 83.83 after the Reserve Bank of New Zealand left the country’s benchmark interest rate unchanged at 2.5%.
AUD/JPY dropped 0.17% to 101.91 after the Australian Bureau of Statistics said the country’s CPI rose 0.4% in the first quarter. Analysts expected an increase of 0.6%.