Forexpros – The broadly weaker U.S. dollar was hovering just above a record low against the yen on Thursday, after European leaders reached an agreement with banks on a writedown of Greek debt.
USD/JPY hit 75.82 during European morning trade, the daily low; the pair subsequently consolidated at 75.86, shedding 0.40%.
The pair was likely to find short-term support at 75.70, Wednesday’s low and the pair’s all-time low and resistance at 76.31, Wednesday’s high.
The dollar weakened broadly after European leaders and banks reached a deal on a 50% writedown for private bondholders on their Greek debt, which will reduce Greece’s debt burden from 160% of GDP to 120% by 2020.
Leaders also agreed to expand the firepower of the euro zone’s bailout fund, the European Financial Stability Facility.
Earlier Thursday, Japanese Finance Minister Jun Azumi once again reiterated that his country would take decisive action against excessive yen moves.
Meanwhile, the Bank of Japan announced additional monetary easing to help lower the yen. The central bank expanded its asset purchase program by JPY5 trillion to JPY55 trillion yen and kept the overnight lending rate at 0.1%.
The yen was slightly lower against the euro, with EUR/JPY rising 0.19% to hit 106.13.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the GDP price index, the broadest measure of inflation. The country was also to publish its weekly data on initial jobless claims.
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