The Japanese yen trimmed early losses against other major currencies on Wednesday after the Bank of Japan decided to keep its monetary easing program in tact, as it seeks to attain a 2 percent inflation goal in two years.
Reaffirming its latest easing measures, the central bank's Policy Board said the bank will conduct money market operations so that the monetary base will increase at an annual pace of about JPY 60-70 trillion.
The bank will continued to purchase Japanese government bonds so that the amount outstanding will increase at an annual pace of about JPY 50 trillion. The average maturity of the bank's JGB purchases will remain at seven years.
Data from the Ministry of Finance said that Japan posted a merchandise trade deficit of 879.936 billion yen in April. This was wider than the 620.6 billion yen shortfall expected by economists.
The yen is now trading near the 102.47 level, at which it closed against the greenback yesterday, bouncing back from an early Asian session's low of 102.64.
The yen is worth 132.42 against the euro, up 0.19 percent from an early 8-day low of 132.67. The pair was quoted 132.23 at yesterday's close. The yen may now eye the next resistance level around 131.00.
The Japanese unit edged up to 105.63 against the Swiss franc from its previous low of 105.89 and stabilized shortly thereafter. If the yen extends its gain, it may seek resistance around the 104.00 level. The franc-yen pair finished Tuesday's deals at 105.61.
After touching a low of 155.57 against the pound in early deals, the yen reversed direction. The pound-yen pair is now trading at Tuesday's close of 155.25. On the upside, the yen has resistance around 154.00 level.
The yen advanced 0.46 percent to 100.27 against the aussie, recovering from a low of 100.73 hit at 8:10 pm ET. The next upside target level for the yen lies around 99.5.
The yen that pulled up from an early low of 83.83 against the NZ dollar is presently trading at 83.60. At Wednesday's close, the pair was worth 83.70. An extension of the upward move may see the yen breaching 83.00 level.
The Japanese currency gained 0.28 percent to 99.68 versus the loonie from its previous low of 99.96. On the upside, the yen may face resistance around the 98.00 level. The loonie-yen pair traded 99.78 at Wednesday's close.
The minutes of the Bank of England's May 9 meeting, U.K. retail sales and public sector net borrowing for April are due in the European session.
Canadian retail sales for March and U.S. existing home sales for April is scheduled to be released in the New York session.
Federal Reserve Chairman Ben Bernanke will testify before the Joint Economic Committee of Congress at 10:00 am ET.
The Fed will release the minutes of its April 30 - May 1 policy meeting at 2:00 pm ET.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.