Investing.com - The U.S. dollar trimmed gains against the yen on Wednesday, as speculation that the Federal Reserve may soon implement fresh easing measures overshadowed a surprise expansion of the Bank of Japan’s asset purchase program.
USD/JPY retreated from 78.65, the pair’s highest since November 1, to hit 78.44 during late Asian trade, up just 0.01% on the day.
The pair was likely to find support at 77.59, the low of December 29 and resistance at 78.65, the session high.
The dollar trimmed gains against the yen amid speculation that the Fed may soon implement fresh quantitative easing measures, which would sap demand for the greenback.
The yen weakened broadly earlier after the BoJ said it would increase the size of its asset-purchase program by JPY10 trillion and set a 1% goal for inflation in an attempt to boost growth and protect the economy from the effects of the strong yen.
In its report for February the central bank said economy has been flat and was expected to remain so for some time to come.
"Japan's economic activity has been more or less flat mainly due to the effects of a slowdown in overseas economies and the appreciation of the yen," the BoJ said.
The yen was lower against the euro, with EUR/JPY rising 0.20% to hit 103.21.
In the euro zone, concerns over the threat of a default by Greece continued after euro zone finance ministers cancelled a meeting planned for later Wednesday to sign off on Greece’s bailout, after failing to receive assurances on how the country plans to implement austerity measures approved in a parliamentary vote on Sunday.
The ministers were expected to instead hold a teleconference later in the day and meet next Monday.
USD/JPY retreated from 78.65, the pair’s highest since November 1, to hit 78.44 during late Asian trade, up just 0.01% on the day.
The pair was likely to find support at 77.59, the low of December 29 and resistance at 78.65, the session high.
The dollar trimmed gains against the yen amid speculation that the Fed may soon implement fresh quantitative easing measures, which would sap demand for the greenback.
The yen weakened broadly earlier after the BoJ said it would increase the size of its asset-purchase program by JPY10 trillion and set a 1% goal for inflation in an attempt to boost growth and protect the economy from the effects of the strong yen.
In its report for February the central bank said economy has been flat and was expected to remain so for some time to come.
"Japan's economic activity has been more or less flat mainly due to the effects of a slowdown in overseas economies and the appreciation of the yen," the BoJ said.
The yen was lower against the euro, with EUR/JPY rising 0.20% to hit 103.21.
In the euro zone, concerns over the threat of a default by Greece continued after euro zone finance ministers cancelled a meeting planned for later Wednesday to sign off on Greece’s bailout, after failing to receive assurances on how the country plans to implement austerity measures approved in a parliamentary vote on Sunday.
The ministers were expected to instead hold a teleconference later in the day and meet next Monday.