Investing.com - " The dollar firmed against the yen on Monday as
investors remained camped out in the safety of the liquid greenback
ahead of the release of the U.S. September unemployment report due
In U.S. trading on Friday, USD/JPY was trading at 98.15, up 0.37%,
up from a session low of 97.79 and off a high of 98.25.
The pair was likely to find support at 96.56, Friday's low, and
resistance at 99.00, Thursday's high.
A U.S. government shutdown that began Oct. 1 and ended last week
left the dollar without one of its chief steering currents, the
monthly U.S. jobs report.
September's unemployment data will hopefully give investors a
weather vane over the direction of U.S. monetary policy.
The Fed is currently buying USD85 billion in Treasury holdings and
mortgage debt a month to boost the economy, a monetary policy tool
known as quantitative easing that drives down interest rates to
spur recovery, weakening the dollar in the process.
The government shutdown and accompanying default fears along with
the naming of dovish Janet Yellen as the new Chair of the Federal
Reserve left may investors guessing when the U.S. central bank will
announce plans to taper its quantitative easing program, which
could push the dollar up in the long term.
Investors hope the September jobs data, originally due out Oct. 4,
will provide a fresh weather vane for the dollar.
Elsewhere, lackluster data out of the U.S. housing sector softened
the dollar's advance over the yen, which served as a safe-haven
currency during Washington's fiscal showdown.
The National Association of Realtors reported earlier that total
existing home sales declined 1.9% to a seasonally adjusted annual
rate of 5.29 million units in September from a downwardly revised
5.39 million in August, mainly due to home prices outpacing income
Analysts were expecting to see 5.30 million units sold.
Meanwhile in Japan, the yen came under pressure after Bank of Japan
Governor Haruhiko Kuroda reiterated Monday that the bank would
stick to its stimulus program and added that the economy was on
track to reach the bank's 2% inflation target.
The yen was down against the pound and down against the euro, with
GBP/JPY up 0.26% and trading at 158.50 and EUR/JPY trading up 0.35%
On Tuesday, expect the pair to trade on the U.S. jobs report.
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