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Forex - USD/JPY slips lower after BoJ comments, Fed weighs

Published 09/20/2013, 02:45 AM
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EUR/JPY
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Investing.com - The U.S. dollar slipped lower against the yen on Friday, after a speech by Bank of Japan Governor Haruhiko Kuroda as the Federal Reserve's decision to hold the current level of its stimulus measures continued to weigh.

USD/JPY hit 99.18 during late Asian trade, the session low; the pair subsequently consolidated at 99.32, edging down 0.13%.

The pair was likely to find support at 97.99, Thursday's low and resistance at 99.97, the high of September 13.

BoJ Governor Haruhiko Kuroda reiterated his call for government efforts to bring its finances under control, saying that sustainable finances are a "indispensable" to achieve sustainable growth.

Speaking at a meeting in Tokyo, Kuroda offered few clues over whether he is planning to implement additional easing measures to mitigate the impact that an expected sales tax hike could have on Japan's economic recovery.

Meanwhile, the greenback remained under pressure after the Fed on Wednesday held back from reducing the USD85 billion pace of its monthly asset purchases.

Fed Chairman Ben Bernanke refused to commit to reducing bond purchases this year, saying the stimulus program was "not on a preset course."

Bernanke added that he wanted to "try to get confirming evidence" that the economy is showing signs of lasting improvement before scaling back the central bank's bond purchases.

The yen was steady against the euro with EUR/JPY dipping 0.05%, to hit 134.49.

Trading volumes were expected to remain light on Friday, with no U.S. economic data to be released throughout the session.


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