The yen paused its advance against the dollar and the euro today after some aggressive selling by traders who are being cautious ahead of more possible stimulus measures to be unveiled by Japanese Prime Minister Shinzo Abe next week.
Abe is scheduled to announce more monetary easing measures on October 1st, and there is speculation that included in this package will be a corporate tax cut.
It has been evident that since the launch of bold monetary easing measures to stimulate the stagnant Japanese economy since Abe came into power end of 2012, the yen has been weakening and is expected to weaken further in the longer term.
Recently we have seen a pause in this weakness due to the US dollar having its own issues and weakened as a result of concerns of the US budget impasse.
The dollar remains weak against other peers apart from the yen.
USDJPY peaked at 99.12 yen after bouncing off a one-week low of 98.27 yen . EURJPY rose to 133.91 yen.
The dollar held onto losses against euro as EURUSD consolidated after rising to a high of $1.3536 in the late US session on Wednesday.
GBPUSD hit a high of $1.6087 yesterday and consolidated into a tight range. The pound will be in focus later today since the UK will be releasing Final GDP data.Publication source