Yen rises against dollar ahead of key BOJ rate decision

NEW YORK (Forex News Now) – The yen rose against the dollar on Wednesday, as Bank of Japan officials discussed policy ahead of a key interest rates decision and following weak data on U.S. retail sales.

In U.S. afternoon currency trading, USD/JPY traded at 88.33, down 0.41 percent on the day.

While the Japanese central bank was unlikely to alter policy on Tuesday, it was set to revise up its economic forecast for the current fiscal year, Reuters reported.

According to forex analysis, USD/JPY was likely to touch support around the low of July 1, 86.97, and encounter immediate resistance around the daily high, 89.11.

Also Wednesday, Census Bureau data showed earlier in the day that U.S. retail sales fell more than expected in June for a second consecutive month, heightening fears about slower growth in the world’s biggest economy.

Meanwhile, the yen climbed versus the euro: EUR/JPY traded at 112.61, down 0.21 percent.