Forex- USD/JPY higher ahead of Fed news, Japanese election
Published Dec 11, 2012 11:04PM ET
Investing.com- The dollar gained steam against the Japanese yen during Wednesday’s Asian session as traders await news from the conclusion of the Federal Reserve meeting later today and set their sights on Japanese elections scheduled for Sunday.
In Asian trading Wednesday, USD/JPY was higher by 0.19% at 82.68. Support for the pair can be found at 82.5425 and again at 82.533. Resistance is spotted at 82.567 and again at 82.582. USD/JPY has traded as high as 82.69 today.
Japanese stocks advanced and the yen slid despite news that North Korea launched long- range rocket, a move that violates international sanctions against the country.
In Japanese economic news, machinery orders rose 2.6% in October that missed economists’ estimates calling for an increase of 3%, but it was enough to stem two months of declines.
Traders are also expecting the Federal Reserve will unleash some form of additional monetary easing when it wraps up its last policy meeting of the year later today. If that happens, it could be viewed as supportive of the U.S. economy and provide some indirect relief to Japanese firms that are struggling with weak domestic and global consumption trends.
Elsewhere, AUD/JPY jumped 0.15% to 87.02. That is the highest for the Australian dollar against the yen since March. NZD/JPY is also seen trading at multi-month highs. EUR/JPY rose 0.13% to 107.47.
After the Fed minutes, traders can their attention to the Japan’s elections, slated for December 16. Current weakness in the yen could be a sign the market is pricing in victory for Shinzo Abe and his Liberal Democratic Party.
Abe has been vocal about his plans to weaken the yen and has pressed the Bank of Japan to engage in unlimited monetary easing to accomplish the goal of depressing Japan’s currency.
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Written By: Investing.com
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