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Forex - USD/JPY steady after Japan move on yen strength

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Forexpros - The U.S. dollar was unchanged against the yen on Wednesday, after Japan unveiled a two-pronged approach aimed at curbing the appreciation of the yen, creating a credit line to promote foreign investment and imposing new rules on companies' foreign exchange holdings.

USD/JPY hit 76.54 during late Asian trade, the daily low; the pair subsequently consolidated at 76.64, unchanged over the day.

The pair was likely to find short-term support at 76.29, the low of August 11 and resistance at 77.20, the high of August 22.

Japanese Finance Minister Yoshiro Noda introduced a USD100 billion credit line designed to facilitate foreign investment by companies with substantial yen holdings.

In addition, the Finance Ministry is step up monitoring of the currency market, requiring major financial institutions to disclose trading positions.

The Bank of Japan expressed support for the initiative, saying that it will contribute to stability within the foreign exchange market.

Meanwhile, the yen was higher against the euro, with EUR/JPY shedding 0.31% to hit 110.33.

Also Wednesday, ratings agency Moody's downgraded Japan's sovereign-credit rating one notch to Aa3, with a stable outlook, citing "weak" prospects for economic growth.

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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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