Investing.com - The U.S. dollar was lower against the yen on Tuesday, easing off a three-month high hit earlier in the session after comments from Japan’s Finance Minister dampened expectations for more monetary easing by the Bank of Japan later this month.
USD/JPY hit 80.01 during European morning trade, the pair’s highest since July 6, before giving back gains to consolidate at 79.77, shedding 0.21%.
The pair was likely to find support at 79.20, the previous session’s low and resistance at 80.02, the high of July 6.
The U.S. dollar broke above the psychologically important JPY80.00 level for the first time in three months earlier in the session, amid growing speculation the Bank of Japan will introduce more monetary easing measures at its next policy meeting on October 30.
But the yen regained strength after Japan’s finance minister Koriki Jojima denied a report saying that the government has asked the BoJ to boost its asset-buying program by JPY20 trillion.
Besides the prospect of further BoJ easing, market players are turning their attention to the Federal Reserve’s policy meeting on Tuesday and Wednesday, after the central bank announced its third round of quantitative easing last month.
The Fed vowed in mid-September to buy an average of USD40 billion of mortgage-backed securities a month until the economy shows significant improvement.
Elsewhere, the yen was also higher against the euro, with EUR/JPY down 0.45% to 103.93.
The euro came under pressure after ratings agency Moody’s cut the credit ratings of Catalonia and four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.
USD/JPY hit 80.01 during European morning trade, the pair’s highest since July 6, before giving back gains to consolidate at 79.77, shedding 0.21%.
The pair was likely to find support at 79.20, the previous session’s low and resistance at 80.02, the high of July 6.
The U.S. dollar broke above the psychologically important JPY80.00 level for the first time in three months earlier in the session, amid growing speculation the Bank of Japan will introduce more monetary easing measures at its next policy meeting on October 30.
But the yen regained strength after Japan’s finance minister Koriki Jojima denied a report saying that the government has asked the BoJ to boost its asset-buying program by JPY20 trillion.
Besides the prospect of further BoJ easing, market players are turning their attention to the Federal Reserve’s policy meeting on Tuesday and Wednesday, after the central bank announced its third round of quantitative easing last month.
The Fed vowed in mid-September to buy an average of USD40 billion of mortgage-backed securities a month until the economy shows significant improvement.
Elsewhere, the yen was also higher against the euro, with EUR/JPY down 0.45% to 103.93.
The euro came under pressure after ratings agency Moody’s cut the credit ratings of Catalonia and four other Spanish regions late Monday, citing their worsening liquidity positions and predicting that these regions are likely to ask the central government for aid in 2013.