Investing.com - The dollar rallied against the yen on Thursday after the Bank of Japan implemented aggressive easing measures aimed at spurring growth and combating deflation in the world’s third largest economy.
USD/JPY hit 95.44 during late Asian trade, the pair’s highest since March 21; the pair subsequently consolidated at 95.24, jumping 2.37%.
The pair was likely to find support at 93.52, the low of March 25 and resistance at 96.26, the high of March 15.
The BoJ, under the leadership of newly appointed Governor Haruhiko Kuroda, 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.
The yen was sharply lower against the euro, with EUR/JPY surging 1.43% to 121.23.
Sentiment on the single currency remained fragile as investors awaited comments by European Central Bank President Mario Draghi after the bank’s policy meeting later in the day amid concerns over the deteriorating economic outlook for the currency bloc and worries over the possible implications of the bailout deal for Cyprus.
The ECB was not expected to announce any changes to monetary policy on Thursday.
Elsewhere, the yen posted steep losses against the pound and the Swiss franc, with GBP/JPY rallying 2.0% to 145.59 and CHF/JPY advancing 2.03% to 100.41.
USD/JPY hit 95.44 during late Asian trade, the pair’s highest since March 21; the pair subsequently consolidated at 95.24, jumping 2.37%.
The pair was likely to find support at 93.52, the low of March 25 and resistance at 96.26, the high of March 15.
The BoJ, under the leadership of newly appointed Governor Haruhiko Kuroda, 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.
The yen was sharply lower against the euro, with EUR/JPY surging 1.43% to 121.23.
Sentiment on the single currency remained fragile as investors awaited comments by European Central Bank President Mario Draghi after the bank’s policy meeting later in the day amid concerns over the deteriorating economic outlook for the currency bloc and worries over the possible implications of the bailout deal for Cyprus.
The ECB was not expected to announce any changes to monetary policy on Thursday.
Elsewhere, the yen posted steep losses against the pound and the Swiss franc, with GBP/JPY rallying 2.0% to 145.59 and CHF/JPY advancing 2.03% to 100.41.