Investing.com - The dollar fell against the yen in Asian trading on Thursday amid growing talk the Federal Reserve is likely to stimulate the U.S. economy with easing measures that would weaken the greenback to spur recovery.
In Asian trading on Thursday, USD/JPY hit 78.11, down 0.07%, up from a session low of 78.05 and off a high of 78.16.
The pair was likely to find support at 77.94, the low of July 23, and resistance at 78.28, the high of July 25.
Weeks of slumping U.S. economic indicators, including weaker-than-expected monthly jobs reports, poor consumer sentiment and spending figures as well as disappointing retail sales numbers have many in the markets forecasting Federal Reserve intervention.
Fed stimulus tools such as quantitative easing, which are large-scale asset purchases from banks that aim to keep interest rates low, often weaken the dollar, which sent many investors snapping up positions in the yen, a safe-haven asset.
The U.S. will release second-quarter gross domestic product figures later this week, and investors were bracing for disappointing data, especially in wake of first-quarter growth of only 1.9%.
Housing, which threw the U.S. into its recession several years ago, continues to weigh on its recovery.
The U.S. Census Bureau reported earlier that new home sales fell by 8.4% to a seasonally adjusted 350,000 units in June, worse than expectations for a decline of 2.6% to 372,000.
New home sales for May were revised up to 382,000 units from a previously reported 369,000.
The yen was up against the pound and up against the euro, with GBP/JPY down 0.12% and trading at 121.00 and EUR/JPY down 0.17% and trading at 94.86.
Later Thursday in Japan, central bank Governor Masaaki Shirakawa is due to speak, and his comments will be closely watched for clues to future direction of monetary policy.
The U.S. will release official data on durable goods orders, a leading indicator of production, as well as data on pending home sales and initial jobless claims.
In Asian trading on Thursday, USD/JPY hit 78.11, down 0.07%, up from a session low of 78.05 and off a high of 78.16.
The pair was likely to find support at 77.94, the low of July 23, and resistance at 78.28, the high of July 25.
Weeks of slumping U.S. economic indicators, including weaker-than-expected monthly jobs reports, poor consumer sentiment and spending figures as well as disappointing retail sales numbers have many in the markets forecasting Federal Reserve intervention.
Fed stimulus tools such as quantitative easing, which are large-scale asset purchases from banks that aim to keep interest rates low, often weaken the dollar, which sent many investors snapping up positions in the yen, a safe-haven asset.
The U.S. will release second-quarter gross domestic product figures later this week, and investors were bracing for disappointing data, especially in wake of first-quarter growth of only 1.9%.
Housing, which threw the U.S. into its recession several years ago, continues to weigh on its recovery.
The U.S. Census Bureau reported earlier that new home sales fell by 8.4% to a seasonally adjusted 350,000 units in June, worse than expectations for a decline of 2.6% to 372,000.
New home sales for May were revised up to 382,000 units from a previously reported 369,000.
The yen was up against the pound and up against the euro, with GBP/JPY down 0.12% and trading at 121.00 and EUR/JPY down 0.17% and trading at 94.86.
Later Thursday in Japan, central bank Governor Masaaki Shirakawa is due to speak, and his comments will be closely watched for clues to future direction of monetary policy.
The U.S. will release official data on durable goods orders, a leading indicator of production, as well as data on pending home sales and initial jobless claims.