Investing.com - The U.S. dollar soared to its highest levels in more than two years against the Japanese yen in Friday’s Asian session as Japanese equities soared and traders awaited the U.S. jobs report for December due out later today.
In Asian trading Friday, USD/JPY surged 0.51% to 87.69. Earlier in the session, USD/JPY traded as high as 87.77, marking the highest levels for the dollar against the yen since late July 2010.
Over the past five trading days, the yen has slumped by about 2% against the greenback. The pair was likely to find support at 86.54, Wednesday's low, and has broken through resistance at 87.36, the earlier high.
Amid speculation that the Federal Reserve may begin winding down its quantitative easing program this year, the dollar was bid higher against most of the other major currencies. Minutes from the most recent Federal Open Market Committee meeting released during Thursday’s U.S. session indicate division among Fed governors regarding when QE3 should grind to a halt.
While the Fed has pledged to keep interest rates low until the U.S. unemployment rate, currently 7.7%, drops below 6.5%, the central bank has not given a definitive date for the end of its easing efforts. In the near-term, the Fed still plans to make monthly bond purchases of USD85 billion.
In the midst of its longest losing streak against the dollar in roughly 24 years, the yen’s weakness is lifting shares of Japanese exporters andUSD/JPY should be in focus during Friday’s U.S. session as Bank of Japan Deputy Governor Kiyohiko Nishimura is scheduled to give a speech later today in the U.S. Japanese equity exchanges are open today for the first time in 2013 following a four-day holiday break.
Elsewhere, EUR/JPY climbed 0.38% to 114.28 while AUD/JPY added 0.3% to 91.59. GBP/JPY was higher by 0.33% at 141.00.
In Asian trading Friday, USD/JPY surged 0.51% to 87.69. Earlier in the session, USD/JPY traded as high as 87.77, marking the highest levels for the dollar against the yen since late July 2010.
Over the past five trading days, the yen has slumped by about 2% against the greenback. The pair was likely to find support at 86.54, Wednesday's low, and has broken through resistance at 87.36, the earlier high.
Amid speculation that the Federal Reserve may begin winding down its quantitative easing program this year, the dollar was bid higher against most of the other major currencies. Minutes from the most recent Federal Open Market Committee meeting released during Thursday’s U.S. session indicate division among Fed governors regarding when QE3 should grind to a halt.
While the Fed has pledged to keep interest rates low until the U.S. unemployment rate, currently 7.7%, drops below 6.5%, the central bank has not given a definitive date for the end of its easing efforts. In the near-term, the Fed still plans to make monthly bond purchases of USD85 billion.
In the midst of its longest losing streak against the dollar in roughly 24 years, the yen’s weakness is lifting shares of Japanese exporters andUSD/JPY should be in focus during Friday’s U.S. session as Bank of Japan Deputy Governor Kiyohiko Nishimura is scheduled to give a speech later today in the U.S. Japanese equity exchanges are open today for the first time in 2013 following a four-day holiday break.
Elsewhere, EUR/JPY climbed 0.38% to 114.28 while AUD/JPY added 0.3% to 91.59. GBP/JPY was higher by 0.33% at 141.00.
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