Investing.com - The dollar shot up against the yen on Friday on a double-whammy of rising demand for riskier currencies like the euro as well as in wake of Bank of Japan policies to reverse the currency's strengthening trend.
In U.S. trading on Friday, USD/JPY hit 80.99, up 1.23% up from a low of 79.93 and also a session high.
The pair sought to test technical support at 80.76 and resistance at 81.15.
The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency, and Japanese importers reportedly sold off their yen positions to prepare for a weaker currency.
Widening interest-rate differentials between the yen and the greenback also sparked selling.
Meanwhile, solid business-climate data out of Germany coupled with lower yields at an Italian bond auction sparked demand for the euro and stocks in a worldwide risk-on trading session.
Since the yen often serves as a safe haven, monetary easing at home coupled with demand for riskier assets worldwide sent the Japanese currency plummeting.
The yen, meanwhile, was down against the Australian dollar as well as the euro, with AUD/JPY gaining 1.08% to 86.87 and EUR/JPY up 1.90% at 109.01.
Japanese retail sales figures are due out Sunday, while on Monday, data on pending U.S. home sales will hit the wire.
In U.S. trading on Friday, USD/JPY hit 80.99, up 1.23% up from a low of 79.93 and also a session high.
The pair sought to test technical support at 80.76 and resistance at 81.15.
The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency, and Japanese importers reportedly sold off their yen positions to prepare for a weaker currency.
Widening interest-rate differentials between the yen and the greenback also sparked selling.
Meanwhile, solid business-climate data out of Germany coupled with lower yields at an Italian bond auction sparked demand for the euro and stocks in a worldwide risk-on trading session.
Since the yen often serves as a safe haven, monetary easing at home coupled with demand for riskier assets worldwide sent the Japanese currency plummeting.
The yen, meanwhile, was down against the Australian dollar as well as the euro, with AUD/JPY gaining 1.08% to 86.87 and EUR/JPY up 1.90% at 109.01.
Japanese retail sales figures are due out Sunday, while on Monday, data on pending U.S. home sales will hit the wire.