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by ForexNewsNow Team on October 4th, 2010

Intraday analysis: USD/JPY consolidates gains; BOJ eyed

Intraday analysis - BOJ chief ShirakawaNEW YORK (Forex News Now) – The dollar consolidated gains versus the yen on Monday, ahead of a key interest rate decision by the Bank of Japan and after mixed U.S. data on pending home sales and factory orders.

In late U.S. currency market trading, USD/JPY hit 83.38, up 0.21 percent on the day.

Early Tuesday, the Bank of Japan was to announce a decision on whether to shift its benchmark interest rate, the Overnight Call Rate. The central bank was expected to keep the rate steady at 0.1 percent, two currency market trading news outlets reported.

According to intraday analysis, USD/JPY was likely to touch support around 82.87, the 15-year low of Sept. 15, and encounter immediate resistance around the high of Sept. 27, 84.39.

Earlier Monday, official data showed that U.S. factory orders slipped more than forecast in August. But the data was offset by an industry report, which showed that pending sales of previously owned home in the United States grew more than expected in August.

Elsewhere, the yen fell versus sterling: GBP/JPY traded at 131.96, up 0.25 percent, according to intraday analysis.

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