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Forex - USD/JPY nears 1-month low as Fed maintains status quo

Published 04/28/2011, 03:44 AM
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Investing.com – The U.S. dollar was down against the yen on Thursday, re-approaching a one-month low after Federal Reserve Chairman Ben Bernanke signaled that ultra-loose monetary policy would stay in place for the foreseeable future.

USD/JPY hit 81.54 during early European trade, the daily low; the pair subsequently consolidated at 81.65, shedding 0.59%.

The pair was likely to find short-term support at 81.25, Wednesday’s low and a one-month low and resistance at 82.59, the high of April 21.

In his first ever post-policy meeting press conference on Wednesday, Bernanke said that the central bank, which left interest rates unchanged, "will complete" its USD600 billion bond-buying program by the end of June and hold short-term rates at a record low for an "extended period." Bernanke said there was no timetable for tightening.

The yen was largely unchanged after the Bank of Japan kept monetary policy steady earlier Thursday, in a widely expected decision.

Deputy BoJ Governor Kiyohiko Nishimura proposed expanding the central bank’s pool of funds for asset buying and market operations by JPY5 trillion to JPY45 trillion, but the proposal was rejected by a vote of one to eight.

The yen was also higher against the euro, with EUR/JPY slipping 0.19% to hit 121.22.

Later in the day, the U.S. was to publish advance data on first quarter gross domestic product, as well as official data on initial jobless claims.


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