Forexpros – The U.S. dollar rose to a six-day high against the yen on Wednesday, as expectations that the Bank of Japan will implement further easing measures next week weighed on the yen while sustained concerns over Spain’s debt woes supported safe haven demand.
USD/JPY hit 81.43 during early European trade, the pair’s highest since April 10; the pair subsequently consolidated at 81.27, climbing 0.53%.
The pair was likely to find support at 80.64, the low of April 10 and resistance at 81.85, the high of April 10.
The yen came under pressure amid growing speculation that the BoJ will likely take fresh easing steps at its next policy-setting meeting on April 27.
The currency was also weighed as investors eyed the release of Japan’s trade data on Thursday, amid expectations that the country’s trade balance swung to a deficit in March after posting a small surplus in February.
Meanwhile, concerns that Spain’s government will not be able to meet deficit reduction targets in the face of a looming recession and may therefore become the next euro zone country to require bailout continued to weigh on market sentiment.
Investors were also jittery after mixed U.S. data on Tuesday failed to paint a reassuring picture of the country’s economic recovery.
Elsewhere, the yen was also lower against the euro with EUR/JPY rising 0.26%, to hit 106.39.
Later in the day, the U.S. was to produce government data on crude oil stockpiles.
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