Forex - USD/JPY dips as BoJ warns on yen strength

Forexpros – The U.S. dollar was steady against the yen on Tuesday, after a senior Bank of Japan official warned against the impact that the yen’s gains could have Japan’s recovery, signaling the bank’s readiness to intervene in currency markets.

USD/JPY hit 78.99 during late Asian trade, the daily low; the pair subsequently consolidated at 79.00, dipping 0.02%

The pair was likely to find support at 78.45, Friday’s low and a four-month low and resistance at 79.60, the high of the same day.

Earlier in the day, BoJ Deputy Governor Hirohide Yamaguchi said the central bank was ready to act if the yen’s gains threatened the country's economic recovery.

"We will take appropriate action when necessary with an eye on the negative impact (of yen rises)," he said.

Meanwhile, Japan’s Finance Minister Yoshihiko Noda said that recent yen moves were one-sided and reiterated that the government will continue to closely observe the foreign exchange market.

Elsewhere, the yen was down against the euro, with EUR/JPY rising 0.25% to hit 111.82.

Later Tuesday, the U.S. was to publish government data on building permits and housing starts.




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