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Forex - USD/JPY hits multi-year high as BoJ leaves policy unchanged

Posted: 3/7/2013 3:54:00 PM
Referenced Stocks: - The dollar hit highs against the yen not seen since August of 2009 on Thursday after the Bank of Japan made no changes to interest rates or to its stimulus programs.

In U.S. trading on Thursday, USD/JPY was trading at 94.92, up 0.90%, up from a session low of 93.80 and off a high of 95.09.

The pair was likely to find support at 92.92, Tuesday's low, and resistance at 95.29, the high from Aug. 18, 2009.

The Bank of Japan earlier made no changes to interest rates or to its JPY76 trillion asset purchasing-program at Governor Masaaki Shirakawa's final meeting before incoming governor Haruhiko Kuroda takes over next month.

Kuroda, a former president of the Asian Development Bank, is a fan of aggressive monetary easing in line with Prime Minister Shinzo Abe.

Meanwhile in the U.S., the Department of Labor said earlier that the number of individuals filing for initial jobless benefits fell by 7,000 to 340,000 last week, defying expectations for an increase of 8,000 to 355,000.

Separate government data revealed that the U.S. trade deficit widened to USD44.5 billion in January from a deficit of USD38.1 billion the previous month.

The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.83% and trading at 142.46 and EUR/JPY trading up 1.98% at 124.39.

On Friday, Japan is to release official data on the current account and revised data on fourth quarter economic growth.

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