Forexpros –
Forexpros – The U.S. dollar moved lower against the Japanese yen in Asian trade Tuesday, as dealers in the region await the Federal Reserve Bank’s next move to address the ailing U.S. economy.
In mid-day Asian trade USD/JPY hit 76.94, the pair’s daily high; the pair subsequently consolidated at 76.77, falling 0.05%.
The pair was likely to find support at 75.97, last Friday’s low, and resistance at 77.19, Monday’s high.
Market attention was expected to focus on this week’s meeting of central bank officials in Jackson Hole, Wyoming at the Fed’s annual convention where expectations are for an additional round of quantitative easing.
At last year’s Wyoming meeting, Federal Reserve Chairman Ben Bernanke triggered a financial rally by commenting that the Fed was ready to “do all that it can” to support the U.S. economic recovery.
Goldman Sachs Group Inc. lowered its forecast for the U.S. economy for 2011 last week, predicting that growth would total only 1.5% this year, down from its initial forecast of 1.7%.
Meanwhile, in a Nikkei Shimbun survey Tuesday, nearly 40% of Japan’s leading companies said they would need to expand production in emerging markets if the yen remains at current levels.
Japanese companies have seen profits dwindle due to persistent strength of the Japanese yen against its counterparts, as overseas corporate earnings must be repatriated into local currency.
Japanese officials have been hoping that a surge in exports could help stimulate growth in the wake of the March 11 earthquake, by a persistently high yen has stifled export expansion.
Meanwhile the yen moved lower against both the euro and the British pound with EUR/JPY up 0.16% to hit 110.43, and GBP/JPY rising 0.15% to hit 126.53.
The U.S. Census Bureau was scheduled to release monthly new home sales figures later Tuesday.
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