Forex - USD/JPY falls as Japan rules out foreign debt purchases

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Investing.com - The yen firmed against the dollar on Tuesday after the Japanese government ruled out plans to buy foreign bonds to battle deflation at home.

In U.S. trading on Monday, USD/JPY was trading at 93.36, down 0.64%, up from a session low of 93.32 and off a high of 93.97.

The pair was likely to find support at 92.23, Friday's low, and resistance at 94.22, Monday's high.

Japanese Prime Minister Shinzo Abe has called for fiscal and monetary policies that prioritize growth over keeping inflation in a tight range, though Finance Minister Taro Aso said earlier the government has no plans to buy debt issued by other countries for now, which would stimulate the Japanese economy and weaken the yen.

The dollar, meanwhile, saw downward pressure thanks to surging investor sentiment data in Europe.

The ZEW Centre for Economic Research reported earlier that its index of German economic sentiment jumped to 48.2 in February, the highest since April 2010, from 31.2 in January.

The figure far surpassed analysts' expectations for a 35.0 reading and sent the euro gaining and the greenback falling throughout much of the session.

The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.95% and trading at 143.94 and EUR/JPY trading down 0.38% at 124.98.

On Wednesday, the U.S. will release official data on building permits, a strong indicator of future construction activity, as well as data on housing starts. The U.S. is also to publish official data on producer prices, while the Federal Reserve is to release the minutes of its most recent policy meeting.

Japan is to publish official data on the trade balance, the difference in value between imports and exports.





&nb Investing.com
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This article appears in: Investing , Forex and Currencies

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