Forexpros – The dollar rose against the yen on Wednesday, as safe-haven demand for the Japanese currency tapered off amid greenback bottom fishing.
In Asian trading on Wednesday, USD/JPY hit 80.77, up 0.12%, up from a low of 80.65 and off a high of 80.78.
The pair sought to test support at 80.65, the earlier low, and resistance at 82.56, Friday’s high.
The yen strengthened against the dollar earlier.
The market was still reeling from dismal U.S. jobs data that broke last Friday, when the government reported the U.S. economy picked up only 120,000 nonfarm payrolls in March, far below expectations.
Federal Reserve Chairman Ben Bernanke appeared in public in the U.S. on Monday, and while he made no mention of monetary policy and whether more extraordinary stimulus measures are needed, he did say the U.S. economic recovery still has a way to go.
Meanwhile, the Bank of Japan’s decision to forgo changes to monetary policy, including resisting political pressure to weaken the yen with further easing measures, sent the yen climbing and the dollar falling until yen profit taking brought the greenback snapping back.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.09% and trading at 128.10 and EUR/JPY up 0.09% and trading at 105.64.
Later Wednesday, Japan will release data on the country’s money supply, while the Bank of Japan will release its monthly report, which contains the statistical data that the central bank’s policy board members evaluated when making their latest decision on interest rates.
In the U.S., the government will release data on import prices, crude stockpiles as well as the federal budget balance.
The Federal Reserve will also to publish its Beige Book.
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