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Forex - USD/JPY slightly lower ahead of BoJ meeting

Published 09/04/2013, 10:54 PM
Updated 09/04/2013, 10:55 PM
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Investing.com - The U.S. dollar traded modestly lower against the Japanese yen during Thursday’s Asian session ahead of monetary policy comments from the Bank of Japan.

In Asian trading Thursday, USD/JPY inched down 0.04% to 99.72. The pair was likely to find support at 99.16, Tuesday’s low and resistance at 100.44, the high of July 25.

Traders are not expecting BoJ to provide much in the way of surprises. The central bank launched a massive monetary stimulus effort in April. The central bank will announce its decision after 0330 GMT and Governor Haruhiko Kuroda will give a media briefing at 0630 GMT.

The most recent batch of economic data out of the world’s third-largest economy has been solid enough to indicate that Abenomics is working and working well enough that Prime Minister Shinzo Abe can push through his proposed consumption tax.

Twenty-two of 32 economists surveyed by Bloomberg News expect a large and negative impact on financial markets should the government postpone its plans of raising the sales tax from April next year, according to the news agency.

While yen bears have become accustomed to easing and may have to live without additional stimulus measures for the near-term, observers of BoJ expect the central bank will roll out fresh easing measures in 2014 in effort to achieve Abe’s goal of 2% inflation within two years.

Elsewhere, AUD/JPY fell 0.09% to 91.42 after the Australian Bureau of Statistics said that Australia’s trade balance fell to AUD-770 million last month from AUD240 million in July. The July reading was revised lower from AUD600 million. Analysts expected an August reading of AUD50 million.

EUR/JPY dropped 0.13% to 131.56 while NZD/JPY fell 0.10% to 78.78.


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