Forexpros – The U.S. dollar edged higher against the yen on Wednesday, amid speculation the Bank of Japan will implement new easing measures at its next policy meeting on April 27 but gains were limited as sustained global growth concerns supported safe haven demand.
USD/JPY hit 80.95 during early European trade, the daily high; the pair subsequently consolidated at 80.78, edging up 0.13%.
The pair was likely to find support at 80.24, the low of February 29 and resistance at 81.20, the high of February 24.
The BoJ held its benchmark interest rate close to zero on Tuesday and left its JPY30 trillion yen asset-purchase fund unchanged, in a widely expected move.
The central bank said that no board member proposed additional easing at the two-day meeting concluded on Tuesday, although investors expect fresh measures to be announced at the bank’s April 27 meeting.
Meanwhile, the yen remained supported amid sustained concerns over the handling of Spain’s financial crisis as the yield on 10-year government bonds remained close to 5.9%, sparking fears that that Spain will be the next euro zone country to require a bailout.
Investors were also cautious after government data on Friday showed that the U.S. economy added just 120,000 jobs in March, the lowest number since December, while a separate report revealed that Chinese imports declined sharply in March.
Earlier in the day, government data showed that core machinery orders in Japan rose unexpectedly in February, adding 4.8% after a 3.4% rise the previous month. Analysts had expected core machinery orders to fall 0.7% in February.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.42%, to hit 105.98.
Later in the day, the U.S. is to release government data on import prices as well as crude oil stockpiles and the federal budget balance. The Federal Reserve is also to publish its Beige Book.
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