By: Hillel Fuld
The USD nosedived VS the JPY on Monday, approaching a 15-year low, after a pessimistic U.S. July payrolls report generated rumors that the Federal Reserve might consider a further easing monetary policy as early as this week.
The greenback stood at 85.40 JPY, down 0.1 percent from levels seen in late U.S. trade prior to the weekend when it hit an eight-month trough of 85.02 yen on trading platform EBS.
Players were nervously watching whether the greenback would surpass its November low of 84.82 yen, which would take it to its lowest since 1995.
Traders said USDJPY saw light selling in early Asian trade, while some demand underpinned the greenback. Hefty buy orders were seen in the 84.90-85.00 yen area, but below that awaits a mine field of stop-loss orders, they said.
"Figures in the U.S. jobs data were poor, supporting views that the dollar will further weaken against the yen, although there is no sense of panic in the market," said a trader at a European bank.
"Most players now expect the Fed to discuss additional steps to relax its monetary policy tomorrow. In fact, it's so priced into the market that share prices could fall if the Fed doesn't do it," the trader said.
The Fed's policy-setting committee will be meeting on Tuesday..
Data showed on Friday that overall U.S. non-farm payrolls fell 131,000 in July, while private employment, a better gauge of labor market health, rose a modest 71,000, below forecasts for a gain of 90,000.
The EUR inched up 0.1 percent to $1.3287 staying within sight of a three-month peak of $1.3334 struck on Friday.