The U.S. dollar halted its decline against the yen during the Asian trading session on Wednesday, after the Bank of Japan reiterated that the pace of economic recovery would remain “moderate.”
USD/JPY made a slight rebound to 89.33, after earlier dropping about 50 pips to a 5-week low. The pair is likely to find resistance at around 89.71, the daily high, and support at 89.13, the Asian trading session low.
The euro also stopped its slide against the Japanese currency, hovering at 125.50, after it earlier plummeted to a new 9-month low at 125.22.
Earlier Wednesday, the Japanese central bank said in its monthly report that, “Japan's economy is picking up mainly due to various policy measures taken at home and abroad, although there is not yet sufficient momentum to support a self-sustaining recovery in domestic private demand.”
The Bank of Japan added: “Japan's economic conditions are likely to continue improving, although the pace of improvement is likely to remain moderate for the time being.”