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Forex - USD/JPY dips as BoJ minutes point to further easing

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Forex Pros - The U.S. dollar dipped against the yen on Monday, slipping to a daily low amid speculation the Bank of Japan will ease monetary policy to bolster the nation's economy in the wake of the country's largest ever earthquake.

USD/JPY hit 80.50 during late Asian trade, the daily low; the pair subsequently consolidated at 80.56, dipping 0.03%.

The pair was likely to find support at 80.04, Friday's low and resistance at 81.65, the high of April 29.

Earlier in the day, the minutes from the BoJ's April meeting said that policymakers believe Japan's economy is still struggling under heavy downward pressure following the March 11 earthquake and tsunami.

The central bank announced a JPY 1 trillion credit facility for lenders at last month's meeting, after having injected a record amount of cash into the money market and doubled its asset-buying fund in March.

BOJ Governor Masaaki Shirakawa has said the bank is ready to ease monetary policy further if needed.

"Members confirmed that the bank would continue to carefully examine the outlook for economic activity and prices, including the possible effects of the disaster, and take appropriate policy action as necessary," the minutes said.

Meanwhile, the yen was lower against the euro, with EUR/JPY climbing 0.48% to hit 115.98.

On Friday, Japan's Finance Minister Yoshihiko Noda said he will carefully watch the rising yen, but stopped short of threatening currency-market intervention.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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