Investing.com - The U.S. dollar traded slightly higher against the Japanese yen ahead of the conclusion of a two-day policy meeting by the Bank of Japan later Tuesday.
In Asian trading Tuesday, USD/JPY inched up 0.01% to 98.78. The pair was likely to find resistance at 99.29, the earlier high, and support at 95.00, Friday's low.
The pair jumped 1.26% during Monday’s U.S. session after Standard & Poor’s revised its long-term outlook on U.S. Treasurys to stable from negative and affirmed the country's AA+/A-1+ rating.
The AA+ rating is one notch below AAA, the highest rating possible and one that the U.S. lost nearly two years. A dwindling number of countries currently have AAA credit ratings. The list include Australia, Canada, Germany, Hong Kong Switzerland and Singapore.
Earlier Tuesday, the Bank of Japan said the country’s M2 money stock rose 3.4% last month after a 3.2% April gain. Analysts expected a 3.5% increase. M3 money supply increased 2.8%, which matched estimates, following a 2.6% April gain.
Traders are now focused on the end of the BoJ meeting with some optimists expecting the central bank to announce an extension of its wide-ranging stimulus initiatives and increase the frequency of its bond-buying activities.
Others are expecting only minor change’s to BoJ’s stimulus efforts or no changes at all. Either scenario risk a spike in the yen, something Japanese bankers and policymakers are trying hard to fend off.
Japanese stocks are slightly lower after the Nikkei 225 surged almost 5% Monday after Japan revised its first-quarter GDP number up to growth of 4.1% from 3.5%.
Elsewhere, EUR/JPY inched up 0.02% to 130.95 while AUD/JPY dropped 0.51% to 93.0. NZD/JPY fell 0.37%. to 77.76.
In Asian trading Tuesday, USD/JPY inched up 0.01% to 98.78. The pair was likely to find resistance at 99.29, the earlier high, and support at 95.00, Friday's low.
The pair jumped 1.26% during Monday’s U.S. session after Standard & Poor’s revised its long-term outlook on U.S. Treasurys to stable from negative and affirmed the country's AA+/A-1+ rating.
The AA+ rating is one notch below AAA, the highest rating possible and one that the U.S. lost nearly two years. A dwindling number of countries currently have AAA credit ratings. The list include Australia, Canada, Germany, Hong Kong Switzerland and Singapore.
Earlier Tuesday, the Bank of Japan said the country’s M2 money stock rose 3.4% last month after a 3.2% April gain. Analysts expected a 3.5% increase. M3 money supply increased 2.8%, which matched estimates, following a 2.6% April gain.
Traders are now focused on the end of the BoJ meeting with some optimists expecting the central bank to announce an extension of its wide-ranging stimulus initiatives and increase the frequency of its bond-buying activities.
Others are expecting only minor change’s to BoJ’s stimulus efforts or no changes at all. Either scenario risk a spike in the yen, something Japanese bankers and policymakers are trying hard to fend off.
Japanese stocks are slightly lower after the Nikkei 225 surged almost 5% Monday after Japan revised its first-quarter GDP number up to growth of 4.1% from 3.5%.
Elsewhere, EUR/JPY inched up 0.02% to 130.95 while AUD/JPY dropped 0.51% to 93.0. NZD/JPY fell 0.37%. to 77.76.