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Forex - USD/JPY steady as Noda warns of yen strength

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Forexpros - The U.S. dollar was fractionally lower against the yen on Thursday, continuing to trade below levels that prompted the Bank of Japan to intervene in the currency market, after Japan's Finance Minister warned of the yen's persistent strength, indicating the country could intervene to stem the yen's gains.

USD/JPY hit 76.52 during European morning trade, a daily low; the pair subsequently consolidated at 76.59, easing down 0.02%.

The pair was likely to find support at 76.29, the low of August 11 and resistance at 77.09, the high of August 15.

Japanese Finance Minister Yoshihiko Noda said earlier that he will continue to "closely watch market moves", while adding that an "intervention is meaningless if not a surprise".

Meanwhile, a spokesman at the Bank of Japan said that Vice Finance Minister for International Affairs Takehiko Nakao met with BOJ Executive Director Hiroshi Nakaso earlier Thursday to discuss recent movements in the currency market.

The basic goals of the conversation were to "analyze the current situation" and discuss "what could be considered going forward," Nakao said following the meeting.

Japan intervened in the currency market for the first time since March on August 4 by selling close to JPY4 trillion and easing monetary policy.

However, the effects of the intervention were short-lived, as the yen remains near an all-time high of 76.25 against the greenback.

Also Thursday, official data showed that the country posted a trade deficit of JPY0.13 trillion last month, narrowing from a deficit of JPY0.20 trillion in June.

The data showed that Japanese exports fell a more-than-expected 3.3%, while imports jumped 9.9%.

Elsewhere, the yen was also up against the euro, with EUR/JPY shedding 0.19% to hit 110.30.

Later in the day, the U.S. was to publish a flurry of economic data, which will help traders gauge the strength of the U.S. economic recovery.

The country was to produce government reports on initial jobless claims, consumer price inflation, existing home sales, manufacturing activity in Philadelphia as well as a report on natural gas stockpiles.

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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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