Investing.com - The dollar fell to two week lows against the yen on Wednesday after data showing slower than expected U.S. jobs growth in September reinforced expectations that the Federal Reserve will delay plans to reduce its stimulus program.
USD/JPY hit 97.27 during late Asian trade, the lowest since October 9; the pair subsequently consolidated at 97.49, shedding 0.66%.
The pair was likely to find support at 96.81, the low of October 9 and resistance at 98.18, the session high.
The dollar dropped after the latest U.S. employment report showed that jobs growth had slowed even before the start of the recent 16-day government shutdown.
The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.
The jobs report was released 18 days behind schedule due to disruption caused by the U.S. government shutdown.
The disappointing data reinforced expectations that the Fed will maintain the current pace of its asset purchase program well into next year.
The safe haven yen was also sharply higher against the euro, with EUR/JPY down 0.72% to 134.24.
Investors were looking ahead to the minutes of the Bank of England’s latest policy meeting later Wednesday, while the Bank of Canada was to announce its benchmark interest rate.
