Investing.com - The dollar was lower against the yen for a second day on Friday as investors took profits after a speech by new Bank of Japan Governor Haruhiko Kuroda disappointed expectations for indications that more aggressive easing monetary measures were imminent.
USD/JPY fell to session lows of 94.20, the pair's lowest since March 7 before settling at 94.48, down 0.45% for the day and 0.93% lower for the week.
The pair is likely to find support at 92.98, the low of March 6 and resistance at 96.10, Thursday's high.
In a speech on Thursday Kuroda reiterated that the BoJ is ready to use all possible options to reach its 2% inflation target, but declined to comment on whether he would call an emergency meeting to discuss more easing ahead of the bank's next policy meeting early next month.
On Wednesday, the Federal Reserve announced that it will leave monetary policy unchanged in spite of recent signs that the U.S. recovery is gaining traction, citing concerns over high unemployment levels and risks from tax increases and federal government spending cuts.
Speaking at the end of the bank's two-day policy meeting, Fed Chairman Ben Bernanke said the central bank may gradually wind down the pace of its bond buying, but only after the labor market shows signs of being on a more stable footing.
The yen slid lower against the euro on Friday as sentiment on the single currency was buoyed by hopes for an agreement on a bailout deal for Cyprus ahead of Monday's deadline.
The European Central Bank said Thursday that it will cut off liquidity to Cypriot banks on Monday if an agreement with the European Union and the International Monetary Fund on an alternative bailout solution is not in place.
The EU and the IMF have offered a EUR10 billion bailout loan to Cyprus, but insisted that the country find a way to raise EUR5.8 billion in exchange for financial aid.
EUR/JPY hit a session high of 123.46 before settling at 122.75, up 0.27% for the day and trimming the week's losses to 0.55%.
In the week ahead investors will be closely monitoring developments in Cyprus as a failure to reach a deal could see the country exit the euro zone.
The U.S. is to release a flurry of data including reports on durable goods orders, home sales and consumer confidence, while Japan is to produce official data on retail sales.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 25
Federal Reserve Chairman Ben Bernanke is to speak at an event in London; his comments will be closely watched for any indication of the possible future direction of monetary policy.
Tuesday, March 26
The U.S. is to release a flurry of economic data with government reports on durable goods orders and new home sales as well as a report on consumer confidence.
Wednesday, March 27
The U.S. is to produce industry data in pending home sales and a government report on crude oil stockpiles.
Thursday, March 28
Japan is to publish official data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
The U.S. is to release the weekly government report on initial jobless claims and revised data on fourth quarter economic growth.
Friday, March 29
Japan is to release official data in inflation, household spending and industrial production, leading indicators of economic health.
The U.S. is to round up the week with official data on personal spending and expenditure and revised data form the University of Michigan on consumer sentiment and inflation expectations.
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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.
