Forex - USD/JPY trading in narrow range amid intervention concerns

Published 03/24/2011, 06:19 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar was trading in a narrow range against the yen on Thursday, as persistent concerns over possible Bank of Japan intervention to weaken the yen kept the currency in check.

USD/JPY hit 80.76 during European morning trade, the daily low; the pair subsequently consolidated at 81.00, easing up 0.12%.

The pair was likely to find support at 79.06, last Friday’s low and resistance at 81.98, the high of the same day.

On Wednesday, the BoJ refrained from injecting cash into the country’s banking system for the first time since the March 11 earthquake and tsunami, in a sign that the country’s cash needs were stabilizing.

The central bank also kept extra yen in the currency market, further supporting the currency after last weeks coordinated action by Japan and other Group of Seven nations to curb the yen’s sharp gains in the wake of the March 11 disaster.

The yen was also lower against the euro, with EUR/JPY rising 0.33% to hit 114.36.

Also Thursday, markets shrugged off data showing that Japan’s exports rose less-than-expected in February, increasing 9% from the year-earlier month to JPY5.5 trillion, less than the forecasted 9.7% gain.


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