Investing.com - The Japanese yen fell modestly against the U.S.
dollar during Asian trade Thursday following the release of a
weaker-than-expected fourth-quarter GDP report.
In Asian trading Thursday, USD/JPY rose 0.05% to 93.47. The pair
was likely to find support at 92.16, the low of February 8 and
resistance at 94.39, Tuesday's high and a two-and-a-half year high.
According to official data, Japan's fourth-quarter GDP reading
showed a contraction of 0.04%. Economists expected growth of 0.04%
in the world's third-largest economy.
Some traders may inclined to view the surprisingly weak growth
report as another opportunity for Prime Minister Shinzo Abe to push
his weak yen/pro inflation agenda. Japan, the world's third-largest
economy and one long suffering from deflation, may see the GDP
report as the impetus to engage asset-buying sooner-than-expected.
The Bank of Japan recently committed to an open-ended asset-buying
program, but said related activities would not commence until 2014,
disappointing financial markets along the way.
The yen also weakened after former Bank of Japan Deputy Governor
Kazumasa Iwata, who is believed to be a possible contender to
become the central bank's next chief, said an exchange rate of 90
to 100 for USD/JPY would be tolerable.
Analysts and traders see the possibility of BoJ taking action in
the second quarter after a new leader for the central bank is
selected. Working on the assumption the new BoJ is in line with
Abe's desires for a weaker yen, a strong possibility, the yen could
weaken further in the months ahead.
Data also showed Japanese exports fell for a seventh straight month
in December. Last month, Goldman Sachs raised its GDP growth
estimate for Japan for the fiscal year ending April due to the
Elsewhere, EUR/JPY fell 0.04% to 125.62 while AUD/JPY fell 0.06% to
96.75. GBP/JPY was off 0.09% at 145.10.
offers an extensive set of professional tools for the Forex,
Commodities, Futures and the Stock Market including real-time data
streaming, a comprehensive economic calendar, as well as financial
news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @