Following the Bank of Japan’s stimulus announcement yesterday, the Yen slipped off a 1-week high versus the U.S. Dollar, largely attributed to an increase in investors’ risk appetite. As reported at 1:58 p.m. (JST) in Tokyo, the USD/JPY pair was trading at 79.59 Japanese Yen, recovering from a drop to 79.28 Yen which occurred not long after the Japanese central bank announced its newest plan to stimulate their economy; analysts say that the Yen remains a short sell in the longer term.
The common currency Euro also held close to the lows struck last week after an Italian debt auction saw some solid demand, and economic data from Spain showed third quarter growth had slowed at a pace slightly less than analysts had expected. The EUR/USD pair was trading at $1.2963, with support seen at just below $1.2900 and likely to continue to trade within the $1.2800 - $1.3200 trading band it has been stuck in since mid-September.
Later today, E.U. finance ministers will take part in a conference call to discuss the situation in Greece with a view to negotiating the terms of the bailout agreement. The Greek government is in desperate need for its next bailout tranche in order to remain afloat but one of the coalition parties is unwilling to accept new labor-related reforms and is challenging further austerity.
Yen Pushed Higher after BoJ Decision
Barbara Zigah