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Forex - Yen higher vs. dollar after BoJ holds, euro slides

Published 04/30/2014, 02:39 AM
Yen firmer after BoJ holds, euro slides ahead of inflation report
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Investing.com – The yen was higher against the dollar on Wednesday after the Bank of Japan refrained from implementing additional stimulus measures, while the euro slid lower ahead of a report on euro zone inflation later in the trading day.

USD/JPY touched lows of 102.29 and was last down 0.24% to 102.38.

The pair was likely to find support at 102.03 and resistance at 102.77, Tuesday’s high.

The BoJ stuck to its pledge to target an annual increase in the monetary base of between ¥60 trillion and ¥70 trillion, in a widely anticipated decision.

Investors were looking ahead to a post-policy meeting press conference with BoJ Governor Haruhiko Kuroda later in the session.

The yen was also higher against the euro, with EUR/JPY down 0.29% to 141.34.

The euro weakened broadly on Tuesday after subdued German inflation data added to pressure on the European Central Bank to take steps to tackle low inflation in the euro zone.

German consumer prices fell 0.2% this month, and increased 1.3% on a year-over-year basis, compared to forecasts for an annual increase of 1.4%.

The annual rate of inflation in the euro zone slowed to a record low 0.5% in March. The ECB targets an inflation rate of close to but just under 2%. The ECB targets an inflation rate of close to but just under 2%.

The ECB has warned that it could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.

The euro was trading close to one-week lows against the dollar, with EUR/USD dipping 0.04% to 1.3806.

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