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Forex - USD/JPY steady at 2-1/2 year highs

Published 02/07/2013, 03:14 AM
USD/JPY
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EUR/JPY
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Investing.com - The dollar was trading close two-and-a-half year highs against the yen on Thursday as expectations for further monetary easing by the Bank of Japan continued to curb demand for the yen.

USD/JPY hit 93.30 during late Asian trade, the session low; the pair subsequently consolidated at 93.50, slipping0.12%.

The pair was likely to find support at 91.97, Tuesday’s low and near-term resistance at 94.05, Wednesday’s high and the pair’s highest since May 2010.

Earlier this week, BoJ Governor Masaaki Shirakawa said he was stepping down three weeks before the conclusion of his five year term on April 8, along with his two deputy governors.

The move is likely to push forward a transition towards more aggressive monetary easing, amid ongoing pressure from Prime Minister Shinzo Abe to step up measures to combat deflation.

Prime Minister Abe is expected to nominate a new governor later this month.

Elsewhere, the yen was trading close to 33-month lows against the euro, with EUR/JPY inching up 0.01% to 126.62.

The single currency remained supported ahead of the European Central Bank’s post-policy meeting press conference later in the day.

The ECB was expected to leave interest rates unchanged at 0.75% on Thursday, but markets were awaiting remarks by President Mario Draghi amid wariness that he could express concerns over the impact of the euro’s recent gains on the region’s economic recovery.



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