Investing.com - The U.S. dollar was trading close to a seven-month high against the yen on Monday, as expectations for more aggressive easing measures by the Bank of Japan mounted ahead of upcoming elections in Japan.
USD/JPY hit 81.59 during late Asian trade, the pair’s highest since April 25; the pair subsequently consolidated at 81.22, dipping 0.12%.
The pair was likely to find support at 80.88, Friday’s low and resistance at 82.54, the high of April 6.
The yen came under broad selling pressure ahead of elections on December 16 which are likely to see the opposition party, which advocates more aggressive monetary easing measures, come to power.
Last week, Japan’s opposition leader Shinzo Abe called on the BoJ to print unlimited yen to reach a new inflation target between 2% and 3% and set interest rates close to zero in order to spur growth.
Investors were looking ahead to the conclusion of the BoJ’s policy-setting meeting on Tuesday, but the bank was widely expected to keep monetary policy on hold.
The dollar also found support against the yen amid hopes for a resolution to the U.S. fiscal cliff after U.S. Congressional leaders said talks with President Barack Obama on Friday were "constructive."
The yen was little changed close to a three-week high low against the euro, with EUR/JPY inching up 0.05% to 103.66.
Later Monday, the U.S. was to release an industry report on existing home sales.
USD/JPY hit 81.59 during late Asian trade, the pair’s highest since April 25; the pair subsequently consolidated at 81.22, dipping 0.12%.
The pair was likely to find support at 80.88, Friday’s low and resistance at 82.54, the high of April 6.
The yen came under broad selling pressure ahead of elections on December 16 which are likely to see the opposition party, which advocates more aggressive monetary easing measures, come to power.
Last week, Japan’s opposition leader Shinzo Abe called on the BoJ to print unlimited yen to reach a new inflation target between 2% and 3% and set interest rates close to zero in order to spur growth.
Investors were looking ahead to the conclusion of the BoJ’s policy-setting meeting on Tuesday, but the bank was widely expected to keep monetary policy on hold.
The dollar also found support against the yen amid hopes for a resolution to the U.S. fiscal cliff after U.S. Congressional leaders said talks with President Barack Obama on Friday were "constructive."
The yen was little changed close to a three-week high low against the euro, with EUR/JPY inching up 0.05% to 103.66.
Later Monday, the U.S. was to release an industry report on existing home sales.