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Forex - USD/JPY lower after BoJ leaves policy unchanged

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Investing.com - The dollar was lower against the yen on Tuesday after the Bank of Japan disappointed expectations for measures to curb market volatility following its policy setting meeting.

USD/JPY hit 97.71 during late Asian trade, the session low; the pair subsequently consolidated at 98.34, shedding 0.41%.

The pair was likely to find support at 97.50 and resistance at 100.45, the high of June 5.

The yen strengthened on Tuesday following falls in Japanese equities overnight after the BoJ kept monetary policy unchanged and refrained from implementing measures to ease volatility in the government bond market.

The central bank said that the economy was picking up, one day after official data showed that Japan's economy expanded by an annualized 4.1% in the first quarter, up from a preliminary reading of 3.5%.

Meanwhile, investors remained focused on whether the Federal Reserve will begin to unwind its easing policies later this year.

Speculation that the U.S. central bank will begin to taper its asset purchase program continued following last week's upbeat U.S. jobs data and after ratings agency Standard & Poor's revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook.

The yen was also higher against the euro, with EUR/JPY down 0.37% to 130.39.

Later Tuesday, Germany's Constitutional Court was to announce the results of a ruling on the constitutionality of the European Central Bank's bond buying scheme.

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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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