Investing.com - The U.S. dollar was trading close to two-and-a-half year highs against the yen on Thursday, as expectations that the Bank of Japan will step up easing measures continued to pin down the yen.
USD/JPY hit 88.30 during late Asian trade, the pair’s highest since January 7; the pair subsequently consolidated at 88.22, gaining 0.39%.
The pair was likely to find support at 87.61, the low of January 7 and resistance at 88.40, the high of January 4 and a two-and-a-half year high.
The yen has been hit by expectations that Japan’s government, led by Prime Minister Shinzo Abe, will pressure the BoJ to implement more aggressive easing measures at its policy meeting later this month as part of an effort to combat deflation.
Meanwhile, investors were looking ahead to a European Central Bank policy meeting later in the trading day.
The ECB was widely expected to hold off cutting rates following its policy-setting meeting, but some market participants expected President Mario Draghi to flag the possibility of rate cuts later in the year.
The yen was trading within striking distance of 18-month lows against the euro, with EUR/JPY rising 0.42% to 115.30.
Later Thursday both Spain and Italy were to hold auctions of governments bonds, while the U.S. was to release the weekly government report on initial jobless claims.
USD/JPY hit 88.30 during late Asian trade, the pair’s highest since January 7; the pair subsequently consolidated at 88.22, gaining 0.39%.
The pair was likely to find support at 87.61, the low of January 7 and resistance at 88.40, the high of January 4 and a two-and-a-half year high.
The yen has been hit by expectations that Japan’s government, led by Prime Minister Shinzo Abe, will pressure the BoJ to implement more aggressive easing measures at its policy meeting later this month as part of an effort to combat deflation.
Meanwhile, investors were looking ahead to a European Central Bank policy meeting later in the trading day.
The ECB was widely expected to hold off cutting rates following its policy-setting meeting, but some market participants expected President Mario Draghi to flag the possibility of rate cuts later in the year.
The yen was trading within striking distance of 18-month lows against the euro, with EUR/JPY rising 0.42% to 115.30.
Later Thursday both Spain and Italy were to hold auctions of governments bonds, while the U.S. was to release the weekly government report on initial jobless claims.