Yen rebounds from 1-week lows vs. dolla

The yen rebounded from one-week lows against the dollar on Thursday, and regained ground against the euro, but trade volumes remained thin ahead of the Easter holiday weekend.

USD/JPY was last trading at 101.95, down from Wednesday’s highs of 102.35.

The pair was likely to find support at 101.49, Tuesday’s low and resistance at 102.35.

The yen regained ground as Japan’s Nikkei pulled back following strong gains in the previous session, as traders positioned ahead of the long Easter weekend.

On Wednesday, Federal Reserve Chair Janet Yellen said that monetary policy will need to remain accommodative for some time, citing slackness in the labor market and low inflation.

Ms. Yellen said the risks of persistently low consumer prices outweighed those of high inflation. She added that the central bank sees room for the U.S. unemployment rate to fall to between 5.2% and 5.6% by the end of 2016. The unemployment rate currently stands at 6.7%.

EUR/JPY was trading at 141.19, after rising to highs of 141.75 on Wednesday.

The euro remained supported despite data on Wednesday confirming that the annual rate of euro zone inflation slowed to 0.5% in March, the lowest since November 2009.

The weak data added to pressure on the European Central Bank to take fresh steps to stave off the risk of deflation in the region.

Elsewhere, the single currency was higher against the dollar, with EUR/USD rising 0.17% to 1.3838.