Forexpros – The U.S. dollar was almost unchanged against the yen in light trade on Wednesday, as markets were jittery amid growing expectations that world central banks will implement further monetary easing in order to shore up growth.
USD/JPY hit 79.59 during early European trade, the daily low; the pair subsequently consolidated at 79.75, easing 0.05%.
The pair was likely to find support at 79.30, the low of July 2 and resistance at 80.13, the high of May 22.
Investors were eyeing the outcome of the Bank of England and the European Central Bank’s policy-setting meetings on Thursday, amid growing expectations for further stimulus measures.
The ECB was widely expected to announce an interest rate cut to 0.75% from the current record low 1.00% to help bolster growth in the region, following a recent string of weak economic data.
Market participants were also awaiting Friday’s U.S. nonfarm payrolls report, amid speculation that the Federal Reserve could implement a third round of quantitative easing to shore up the economy, which has been hit by the ongoing crisis in the euro zone.
Elsewhere, the yen was higher against the euro with EUR/JPY falling 0.23%, to hit 100.38.
Later in the day, the euro zone was to publish official data on retail sales, as well as revised data on service sector activity.
Trade volumes were expected to remain light as markets in the U.S. closed for the Independence Day holiday.
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