The U.S. dollar rallied against the yen on Thursday, after U.S. President Barack Obama allayed fears about efforts to curb bank risk-taking by not revealing any concrete plans on the matter in his State of the Union address.
USD/JPY hit 90.42 during the European trading session, its highest rate since Tuesday. The pair is likely to find resistance at 91.86, last Thursday’s high, and support around 89.86, the daily low.
The Japanese currency also fell against the pound and euro. GBP/JPY reached 147.99, gaining 1.02%, and EUR/JPY rose to 126.91, increasing 0.55%.
Last week, Obama's announcement that he would seek to limit curb risky lending by banks rattled financial markets, and the yen gained amid the ensuing wave of risk aversion.