Forex - USD/JPY slightly lower ahead of G20 meeting

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Investing.com - The Japanese yen rose modestly against the U.S. dollar today as traders appear to be expecting backlash directed at Japan for allowing the yen to depreciate so rapidly at the G20 meeting that starts later today in Moscow.

In Asian trading Friday, USD/JPY fell 0.02% to 92.86. The pair was likely to find support at 92.35, the low of February 11 and resistance at 94.45, the high of February 11 and a two-and-a-half year high.

With yen down 15% against the dollar in the past three months, some countries have accused Japan of intentionally manipulating the currency lower. Some even promised retaliatory action. Brazil, Germany and South Korea, themselves export-driven economies like Japan, have been among the most vocal critics of the suddenly weak yen.

Still, Japan showed a fourth-quarter GDP contraction of 0.4% in data released yesterday, stoking speculation the Bank of Japan may engage in some form of asset-buying when a new governor is appointed in the second quarter.

BoJ Governor Masaaki Shirakawa steps down in March and markets are expecting Prime Minister Shinzo Abe to replace Shirakawa with a candidate whose views on monetary policy are in line with his own.

Earlier this week, the G7 nations of which Japan is a member, pledged to let markets determine exchange rates, though some rival export-dependent nations may view Japan as only paying lip service to markets setting exchange rates.

For his part, Japanese Finance Minister Taro Aso has been adamant that his country is not intentionally weakening the yen. On Thursday Aso said the improving Japanese economy is absolutely not the result of the yen being weakened on purpose.

Elsewhere, EUR/JPY fell 0.03% to 124.06 while AUD/JPY lost 0.07% to 96.17. GBP/JPY added 0.10% to 144.05.




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