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COZfx: USD/JPY rose to trade near 4-year highs


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COZforex: The dollar was trading close to the key psychological level of 100 per yen on Wednesday as markets looked ahead to an upcoming Bank of Japan meeting on Friday.


USD/JPY hit 99.77 amid late Asian trade, the pair’s highest since Monday; the pair subsequently consolidated at 99.69, rising 0.24%. COZforex foreign currency senior currency strategist, Paul Chew said, USD/JPY is predicted to find support at 98.69, and a decline through could take it to the next support line of 97.93. Meanwhile, the pair is predicted to find its first resistance at 99.99, and a rose through could take it to the next resistance line of 100.53.

The BoJ was to hold a policy meeting on Friday, after unveiling a plan earlier this month to double its asset purchase program over the next 2 years in an attempt to achieve its 2% inflation target. The bank is also to release its semi-annual outlook report, which includes inflation and economic forecasts.

In economic news, the corporate service price index (CSPI) in Japan dropped 0.2% annually in March.

The yen slipped lower against the euro, with EUR/JPY easing up 0.17% to 129.52.

The euro remained under pressure as expectations for a rate cut by the European Central Bank weighed on the single currency.

The euro zone was to release the Ifo index of German business climate later Wednesday, while the US was to produce government data on durable goods orders.



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