Yen Advances As BoJ Refrains From Adding More Stimulus
October 06 2015 - 9:19PM
RTTF2
The Japanese yen was modestly higher in Asian deals on
Wednesday, after the Bank of Japan held off from further easing and
maintained its target for expanding monetary base at an annual pace
of about JPY 80 trillion, by an 8 to 1 vote.
The decision was in line with economists' expectations.
The bank said that the annual rate of increase in consumer
prices was flat. Inflation expectations appear to be rising on the
whole from a somewhat longer-term perspective.
The BoJ maintained its optimistic assessment of the economy by
stating that the economy has continued to recover moderately as a
trend.
Traders await more signals about any potential future BoJ
easing, when its chief Haruhiko Kuroda holds press conference in
the afternoon.
The risk-on mode in Asia limited further gains in the currency.
The Asian markets are mostly higher, as oil prices extended gain
after U.S. Department of Energy's latest forecast showed tighter
oil supplies next year.
The currency was trading lower against the pound, franc and the
euro on Tuesday. Against the U.S. dollar, it trended higher.
The yen strengthened to a 5-day high of 119.76 against the
greenback, up by 0.37 percent from Tuesday's closing value of
120.20. The yen is seen challenging resistance around the 118.5
mark.
The yen advanced to 123.87 against the franc and 135.03 against
the euro, coming off from its prior more than a 2-week low of
124.42 and a 2-day low of 135.63, respectively. The yen ended
Tuesday's trading at 124.30 versus the franc and 135.44 versus the
euro. On the upside, the yen may locate resistance around 122.00
against the franc and 133.00 against the euro.
Having fallen to near a 2-week low of 183.36 against the pound
at 9:40 pm ET, the yen reversed direction with the pair trading at
182.50. The pair was worth 182.98 when it finished Tuesday's
trading. If the yen extends gains, 181.00 is possibly seen as its
next resistance level.
The yen rebounded to 91.94 against the loonie and 85.93 against
the aussie, from its early more than a 5-week low of 92.37 and more
than a 2-week low of 86.37, respectively. The next possible
resistance levels for the yen may be found around 90.5 against the
loonie and 84.00 against the aussie.
Preliminary Japanese leading index for August is due at 1:00 am
ET.
German industrial production for August is set for release in
the pre-European session at 2:00 am ET.
U.K. industrial and manufacturing output for August will be
published in the European session.
Canada building permits for August, Energy Information
Administration's crude inventory data for the week ended October 2
and U.S. consumer credit for August are to be released in the New
York session.
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