USD slumps over 1% against JPY amid gloomy BOJ stimulus

On Friday, the major American currency edged down over 1% to three-week minimums against the Japanese yen, following the stimulus measures announced by the BOJ. The BOJ’s plan disappointed financial markets. Meanwhile, traders waited for the release of American economic growth data a bit later today.   

During late Asia trade, the currency pair USD/JPY hit 102.72, the pair’s lowest value since July 12. After a while the pair consolidated at 103.69, dropping 1.50%. Besides this, the pair was likely to gain support at 102.41, the minimum of July 12 as well as resistance at 106.54, the peak of July 27.

At the conclusion of its monthly policy gathering on Friday, Japan’s major financial institution announced a moderate surge in purchases of exchange-traded funds, although maintained its base money target at about 80 trillion yen and the pace of purchases for other assets.

The major bank also kept negative interest rates intact at -0.1%.

Additionally, the move ruined hopes for a stimulus package of approximately 28 trillion yen promised by Shinzo Abe, Japan’s Prime Minister earlier in the week to drive the national economy.

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