Investing.com - The U.S. dollar is surging against the Japanese yen after new Bank of Japan Governor Haruhiko Kuroda delivered what yen bears wanted in the form of additional stimulus measures.
In Asian trading Friday, USD/JPY is trading near four-year highs, up 0.42% at 96.74, thought that is well off the high of the session at 97.06. The pair was likely to find support at 93.52, the low of March 25 and resistance above 97.
BoJ said it plans to double its asset purchase program over the next two years and extend the maturities of the bonds it purchases.
It also plans to bring forward the timing of open-ended asset purchases and said it was likely to buy JPY7 trillion in long-term Japanese government bonds a month. Leading up to the BoJ meeting, the yen showed some strength as traders began doubting Kuroda's ability to build a consensus among central bank members for immediate easing.
Kuroda proved those detractors wrong when he unveiled what he called a "new phase of monetary easing." Thursday's moves in USD/JPY and EUR/JPY were the largest for those pairs since 2008.
EUR/JPY is up 0.45% at 125.17 The pair sought to test support at 119.12, Wednesday's low, and has now broken resistance at 124.50, the high from March 20. On Thursday, the European Central Bank disappointed euro bears by leaving its benchmark interest rate unchanged.
ECB President Mario Draghi tried to lift markets' spirits by saying the central bank is still considering an array of actions to help the euro zone economy, remarks that traders took to mean ECB could be close to cutting rates or unveiling new stimulus measures.
The ECB's benchmark interest rate has been 0.75% since July 2012. Draghi did not specify what measures are on the table in terms of helping European economies.
Elsewhere, AUD/JPY is up 0.38% at 100.91 while NZD/JPY is higher by 0.30% at 81.39.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.