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Forex - USD/JPY edges higher, gains limited before Bernanke

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Investing.com - The dollar edged higher against the yen on Wednesday, but gains were limited ahead of testimony on the economy and monetary policy by Federal Reserve Chairman Ben Bernanke later in the trading day.

USD/JPY hit 102.73 during late Asian trade, the session high; the pair subsequently consolidated at 102.59, gaining 0.11%.

The pair was likely to find support at 101.95, Monday's low and resistance at 103.00.

Investors remained cautious ahead of testimony at the U.S. Joint Economic Committee by Ben Bernanke, amid speculation over whether the U.S. central bank will begin to scale back its asset purchase program this year.

The Fed was to publish the minutes of its May policy setting meeting later Wednesday.

On Tuesday, St. Louis Fed President James Bullard said the Fed should continue its bond buying and make adjustments as the economy changes.

The dollar briefly touched session lows against the yen earlier after the Bank of Japan left monetary policy unchanged, in a widely expected decision.

The bank also upgraded its economic outlook, saying growth had started picking up.

The yen was lower against the euro, with EUR/JPY rising 0.29% to 132.61.

Also Wednesday, official data showed that Japan posted a trade deficit of JPY0.76 trillion in April, the tenth consecutive monthly deficit. Exports rose 3.8% from a year earlier, while imports were up 9.4%.

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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.


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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