Investing.com - The U.S. dollar weakened against the Japanese
yen during Monday's Asian session as traders were once again seen
fretting about the rapid pace of the yen's recent declines against
In Asian trading Monday, USD/JPY fell 0.01% to 92.78 after earlier
trading as low as 92.50. The pair is likely to find support at
91.59, Friday's low and resistance at 93.63. Last week. USD/JPY hit
hit 92.97; the pair's highest since May 2010 before settling back
to 92.78 at Friday's close.
The Japanese currency has declined for 12 straight weeks against
the greenback on expectations that Prime Minister Shinzo Abe will
keep pressing for bold and unlimited monetary stimulus to revive
the world's third-largest economy. Abe has already been successful
at getting the Bank of Japan to boost its inflation target to 2%
Still, the yen has been the worst-performing developed world
currency this year, a fact that is not lost on traders that believe
the yen's pace of depreciation against the dollar cannot last
forever. Some Japanese officials have also cautioned against
allowing the yen to fall too far too fast against the dollar and
Although the 2% inflation target has been adopted, it is widely
believed that monetary easing cannot be stopped in the near-term
because it will take a while for Japan, riddled with deflation for
years, to reach 2% inflation.
Even with that sentiment and the fact that UDS/JPY was rebuffed in
the 93 area, traders still seem to expect that it is only a matter
of time before USD/JPY tests 95, a level not seen since 2010.
Meanwhile, Bank of Japan said that Japan's monetary base
unexpectedly declined to 10.9% in January from 11.8% in December.
Analysts expected Japan's to rise to 13.2% in January.
Elsewhere, EUR/JPY fell 0.15% to 1.2641 while AUD/JPY added 0.1% to
96.67. GBP/JPY slipped 0.08% to 145.55.
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