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Forex - USD/JPY gains on solid U.S. jobs data, BoJ meet weighs

Posted
3/6/2013 3:54:00 PM
By: Investing.com
Referenced Stocks:

Investing.com - The dollar firmed against the yen on Wednesday after industry data revealed that hiring is on the rise in the U.S. private sector, which rekindled talk the Federal Reserve may be closer to wrapping up stimulus measures that weaken the dollar as side effects.

Uncertainty ahead of a Bank of Japan meeting this week steered market participants away from the yen as well.

In U.S. trading on Wednesday, USD/JPY was trading at 93.98, up 0.74%, up from a session low of 93.01 and off a high of 94.09.

The pair was likely to find support at 92.92, Tuesday's low, and resistance at 94.50, the high from Feb. 24.

In the U.S., payroll processor ADP reported earlier that private-sector, non-farm payrolls rose by 198,000 in February, beating expectations for an increase of 170,000.

January's figure was revised up to a gain of 215,000 from a previously reported increase of 192,000.

Elsewhere, the U.S. Census Bureau reported that factory orders fell by 2% in January, less than market calls for a drop of 2.2%.

The data rekindled recently waning talk that the Federal Reserve may be closer to winding down monetary stimulus tools, including a monthly USD85 billion bond-buying program known as quantitative easing, which weakens the dollar by flooding the financial system full of liquidity to spur recovery.

Meanwhile on Thursday, the Bank of Japan will announce its latest decision on interest rates and monetary policy.

While the country's Prime Minister Shinzo Abe has made it clear he supports looser polices at the monetary authority, uncertainty ahead of the BoJ's decision kept investors avoiding the Japanese currency.

The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.19% and trading at 141.38 and EUR/JPY trading up 0.33% at 122.14.

All eyes will focus on the Bank of Japan on Thursday.

Meanwhile in the U.S., the government will publish its weekly government report on initial jobless claims and official data on the trade balance.








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