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Forex - USD/JPY lower in mid-day Asian trade

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Forexpros - The Japanese yen padded gains against the U.S. dollar in Asian trade Thursday, as the lift given to the greenback from the Federal Reserve's vow to keep interest rates low faded in light of steep losses on Wall Street.

In early Asian trade USD/JPY hit 77.22, the pair's highest since Tuesday; the pair subsequently consolidated at 76.69, falling 0.22%.

The pair was likely to find support at 76.36, today's low, and resistance at 79.41, last Friday's high.

Earlier in the week, the Federal Open Market Committee voted to extend ultra-low interest rates at 0.25% until at least the middle of 2013, citing concerns on the prospects for growth in the U.S. economy.

Wall Street shares have endured rocky sessions in the aftermath of the central bank's decision, and by the end of Wednesday trading the the Dow Jones Industrial Average sank 4.6% to 10,720, the Nasdaq Composite Index lost 4.1% to 2,381, and the S&P 500 sagged 4.4% to 1.121.

Japanese core machinery orders jumped 7.7% in June, according to a Cabinet Office report Thursday. The figure exceeded by a wide margin the 1.8% the market had forecast.

And the U.S. Treasure, in its Wednesday report, said that the U.S. Federal Budget Balance fell to USD129.4 billion, down from USD43.1 billion the previous month, and far below the USD140 billion expected by the market.

Meanwhile the yen moved lower against the euro but up against the British pound with EUR/JPY up 0.10% to hit 109.05, and GBP/JPY falling 0.03% to hit 123.95.

The U.S. Labor Department was to release weekly figures on initial jobless claims on Thursday.

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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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