Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

Forex - USD/JPY surges on Japanese economy official\'s dovish comments

Published 01/24/2013, 02:47 PM
USD/JPY
-
EUR/JPY
-
GBP/JPY
-
Investing.com - The dollar shot up against the yen on Thursday after Japan's deputy economy minister said his government would not feel uncomfortable with a much weaker yen.

In U.S. trading on Thursday, USD/JPY was trading at 90.01, up 1.56%, up from a session low of 88.42 and off a high of 90.14.

The pair was likely to find support at 88.06, Wednesday's low, and resistance at 90.25, the high from Jan. 20.

Earlier Thursday, Japan's Deputy Economy Minister Yasutoshi Nishimura said a USD/JPY exchange rate of 100 would not cause major concerns to the government, which sent the Japanese currency plunging.

Prime Minister Shinzo Abe has made repeated calls for looser monetary policy and greater tolerance for inflation as part of more pro-growth economic strategies.

Earlier this week, the Bank of Japan said it would start open-ended asset purchases from banks to stimulate the economy but not until 2014.

Meanwhile in the U.S. earlier, the Department of Labor reported the number of people who filed for new unemployment claims last week fell to the lowest level since January 2008.

The number of individuals filing for initial jobless benefits fell by 5,000 to 330,000, compared to expectations for an increase of 20,000 to 355,000. Jobless claims for the preceding week stood at 335,000 people.

Elsewhere, the yen was down against the pound and down against the euro, with GBP/JPY up 1.18% and trading at 142.09 and EUR/JPY trading up 1.96% at 120.34.

On Friday, Japan is to release government data on consumer inflation, which accounts for the majority of overall inflation. Meanwhile, the Bank of Japan is to publish the minutes of its most recent policy meeting.








Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.