Investing.com - The dollar dropped to two-and-a-half month lows against the yen on Thursday as fears over the future of central bank stimulus fuelled widespread risk aversion, boosting safe haven inflows to the yen. USD/JPY hit 93.80 during late Asian trade, the pair’s lowest since April 4; the pair subsequently consolidated at 94.01, tumbling 2.03%. The pair was likely to find support at 92.72, the low of April 4 and resistance at 96.09, the session high. The yen strengthened against the dollar and the euro following sharp falls in Japanese equities overnight as concerns over the prospect of an end to central bank stimulus fuelled a broad based sell-off in risk assets and the dollar. Earlier this week the Bank of Japan disappointed expectations for measures to ease volatility in the government bond market. The BoJ’s lack of action, along with expectations that the Federal Reserve will begin to scale back its bond buying program, has fuelled fears over the future of central bank stimulus. The euro fell to eight-week lows against the yen, with EUR/JPY down 1.80% to 125.69. The U.S. was to release official data on retail sales and the weekly government report on initial jobless claims later in the trading day.

Source