by ForexNewsNow Team on October 6th, 2010

Intraday analysis: USD/JPY hits fresh 15-year low despite BOJ

intraday analysis - Timothy GeithnerNEW YORK (Forex News Now) – The yen surged to a fresh 15-year high against the dollar on Wednesday, despite the Bank of Japan’s pledge to keep interest rates virtually at zero and pump more cash into the economy.

In European afternoon currency market trading, USD/JPY hit 82.74, the new 15-year low. The currency pair later rose slightly to trade at 82.98, down 0.3 percent on the day.

The yen’s gains also came after the U.S. Treasury Secretary, Timothy F. Geithner, warned that the rebalancing of the economy was “at risk of being undermined” by countries trying to stop their currencies from strengthening.

“Over time, more and more countries face stronger pressure to lean against the market forces pushing up the value of their currencies,” Geithner said in a speech at the Brookings Institute.

“The collective impact of this behavior risks either causing inflation and asset bubbles in emerging economies, or else depressing consumption growth and intensifying short-term distortions in favor of exports.”

According to intraday analysis, USD/JPY was likely to touch support around 82.74 and encounter immediate resistance around the high of Sept. 27, 84.39.

Meanwhile, Japan was due early Thursday to publish reports on machine tool orders, a leading indicator, and the country’s general economic outlook.

Elsewhere, the yen fell versus the euro: EUR/JPY traded at 115.58, up 0.36 percent.

By ForexNewsNow Team

This is a general account of the ForexNewsNow Team. It is used to published exclusive content carefully crafted by our experts as well as it is used to bring you the most recent industry highlights from our guest contributors that wish to remain anonymous.

More content by ForexNewsNow Team

Comments (0 comment(s))