Investing.com - The U.S. dollar was almost unchanged against the yen on Thursday, after the Bank of Japan said the country’s recovery has slowed down and as fears over the handling of the euro zone’s debt crisis persisted.
USD/JPY hit 78.02 during early European trade, the daily low; the pair subsequently consolidated at 78.05, edging down 0.01%.
The pair was likely to find support at 77.71, the low of December 19 and resistance at 78.27, the high of November 29.
Trading volumes were thin in many Asian markets ahead of the Christmas holiday weekend, resulting in quiet trade. Markets in Japan were to remain closed Friday.
In its monthly report, the BOJ warned that the country's recovery has stalled as business sentiment deteriorated in the wake of weaker export demand.
BOJ Governor Masaaki Shirakawa also indicated that declines in fiscal credibility would be a shock to the economy indicating that the central bank does not plan on dramatically expanding any of its monetary stimulus programs for the foreseeable future.
On Wednesday, the central bank left its benchmark interest rate unchanged close to zero.
Earlier Thursday, Japan’s government lowered its real gross domestic product forecast earlier to a 0.1% contraction from the 0.5% growth predicted previously, citing a strong yen and the effects of the euro zone’s sovereign debt crisis on Japanese exports.
Meanwhile, markets were jittery after the European Central Bank failed to convince that its unprecedented three-year loan of EUR489.19 billion would improve banks’ prospects in the euro zone.
The yen was lower against the euro with EUR/JPY adding 0.41%, to hit 102.26.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP. The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.
USD/JPY hit 78.02 during early European trade, the daily low; the pair subsequently consolidated at 78.05, edging down 0.01%.
The pair was likely to find support at 77.71, the low of December 19 and resistance at 78.27, the high of November 29.
Trading volumes were thin in many Asian markets ahead of the Christmas holiday weekend, resulting in quiet trade. Markets in Japan were to remain closed Friday.
In its monthly report, the BOJ warned that the country's recovery has stalled as business sentiment deteriorated in the wake of weaker export demand.
BOJ Governor Masaaki Shirakawa also indicated that declines in fiscal credibility would be a shock to the economy indicating that the central bank does not plan on dramatically expanding any of its monetary stimulus programs for the foreseeable future.
On Wednesday, the central bank left its benchmark interest rate unchanged close to zero.
Earlier Thursday, Japan’s government lowered its real gross domestic product forecast earlier to a 0.1% contraction from the 0.5% growth predicted previously, citing a strong yen and the effects of the euro zone’s sovereign debt crisis on Japanese exports.
Meanwhile, markets were jittery after the European Central Bank failed to convince that its unprecedented three-year loan of EUR489.19 billion would improve banks’ prospects in the euro zone.
The yen was lower against the euro with EUR/JPY adding 0.41%, to hit 102.26.
Later in the day, the U.S. was to publish its weekly report on initial jobless claims, as well as revised data on third quarter GDP. The University of Michigan was also to release revised data on consumer sentiment and inflation expectations.