Dollar lower against yen after BoJ holds

The dollar was lower against the yen on Tuesday, after the Bank of Japan refrained from implementing additional stimulus measures at its latest policy meeting.

USD/JPY touched lows of 102.75, the weakest since March 28 and was last down 0.19% to 102.89.

The pair was likely to find support at 102.50 and resistance at 103.38, Monday’s high.

The BoJ voted to keep its key policy target of increasing base money unchanged at an annual pace of ¥60 trillion to ¥70 trillion after ending its two-day policy meeting.

The bank stuck to the view that the economy is likely to stay on a gradual recovery track despite swings in demand caused by a sales tax hike on April 1.

The dollar continued to remain under pressure after last week’s U.S. payrolls report disappointed some market expectations for a stronger number. Market watchers were looking ahead to Wednesday’s minutes of the Federal Reserve’s March meeting for further indications on the future direction of monetary policy.

The euro was also weaker against the firmer yen, with EUR/JPY down 0.20% to 141.36.

Elsewhere, the single currency was almost unchanged against the dollar, with EUR/USD dipping 0.02% to 1.3738.

The euro gained ground against the dollar on Monday as comments by European Central Bank officials tempered expectations for quantitative easing, while stronger than forecast German industrial production data for February also lent support.

ECB governing council member Yves Mersch said there is no immediate risk of deflation in the euro zone and therefore no urgent need to implement large-scale bond purchases.