The US dollar was flat against the Japanese yen in Asian trading today as investors hesitated to push the currency lower ahead of a closely-watched U.S. central bank meeting Tuesday. However, the greenback could begin sliding again if that meeting increases further speculation about U.S. interest rates.
Following weaker-than-expected U.S. jobs data Friday, the greenback fell to multi-year lows against other Asian currencies including the Chinese yuan. Analysts have said the dollar may continue struggling against a broad range of currencies as slower economic growth in the world's leading economy threatens to keep interest rates low for a longer-than-expected period.
Yen long positions have rarely risen sharply above 50,000 contracts, suggesting further gains may be more moderate, analysts have said. But technical analysis shows that the market likely has room for further bets on the yen. Meanwhile, the USD is likely to remain under pressure.