Forex - USD/JPY falls as Japan official says easing sufficient
Published May 24, 2013 12:31PM ET
Bank of Japan Governor Haruhiko Kuroda said earlier that monetary stimulus programs were "necessary" but also "sufficient," which strengthened the yen.
In U.S. trading on Friday, USD/JPY was trading at 101.00, down 0.99%, up from a session low of 100.85 and off a high of 102.59.
The pair was likely to find resistance at 103.73, Wednesday's high, and support at 100.83, Thursday's low.
The Bank of Japan has launched massive monetary stimulus programs to steer its economy away from deflationary decline and more towards growth, with the yen plunging in the process, though Kuroda's words sparked demand for the currency on sentiments that monetary authorities will hold off on further stimulus for now.
The dollar dropped against the Japanese currency despite solid data at home, which firmed the greenback against the euro and other major currencies.
In the U.S., the Commerce Department reported that core durable goods orders, which are stripped of volatile transportation items, rose 1.3% in April, beating expectations for a 0.5% increase after contracting by 1.7% in March.
Broader orders for durable goods, which include transportation items, rose 3.3% last month, more than market calls for a 1.5% increase after a 5.9% contraction in March.
The numbers sparked demand for the greenback by stoking sentiments that the Federal Reserve may be closer to winding down monetary stimulus programs.
Stimulus tools such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their dismantling can strengthen the greenback.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.93% and trading at 152.67 and EUR/JPY trading down 1.14% at 130.39.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.