Forex Pros – The U.S. dollar slipped to a one-month low against the yen on Tuesday, ahead of a key Federal Reserve two-day policy meeting set to begin later in the day.
USD/JPY hit 81.57 during early European trade, the pair’s lowest since March 28; the pair subsequently consolidated at 81.68, slipping 0.17%.
The pair was likely to find support at 80.86, the low of March 23 and resistance at 82.59, the high of April 21.
The Fed was expected to stick to its plan to complete its USD600 billion bond-buying program in June, while Fed Chairman Ben Bernanke was not expected to give any indications of an immediate plan to tighten the bank’s policy, at the first news conference ever by a Fed chairman, after the meeting on Wednesday.
However, the greenback’s losses were limited amid increased dollar demand from Japanese asset management firms as a number of investment trusts were due to be launched later in the day.
Meanwhile, the yen was unchanged on the day against the euro, with EUR/JPY at 119.29.
Later Tuesday the U.S. was to publish reports on house price inflation and consumer confidence, as well as official data on manufacturing activity in Richmond.
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