Yen Falls On Japan Prime Minister Abe's Comments

The Japanese yen weakened against the other major currencies in the Asian session on Wednesday, after the Japanese Prime Minister Shinzo Abe said that the government would compile an economic stimulus package.

While speaking in the southern city of Fukuoka, Abe said that he will announce an economic stimulus package worth 27 trillion yen ($254 billion), as an effort to revive the economy.

Meanwhile, the Bank of Japan begins its two-day policy meeting Thursday. Economists expect further monetary stimulus from the central bank.

Also, the Asian stock markets are mostly higher, with the Japanese market staging a rebound following three straight days of losses. However, gains are modest in most markets as investors treaded cautiously ahead of the U.S. Federal Reserve's interest rate decision later in the day.

The Federal Reserve is widely expected to leave interest rates unchanged at the end of its two-day policy meeting today, although investors will look closely at the statement that will accompany the Fed decision, searching for clues as to when the central bank will hike interest rates.

Tuesday, the yen rose 1.16 percent against the euro, 1.18 percent against the pound, 1.02 percent against the U.S. dollar and 1.77 percent against the Swiss franc.

In the Asian trading, the yen fell to a 6-day low of 74.71 against the NZ dollar and a 5-day low of 117.14 against the euro, from yesterday's closing quotes of 73.78 and 114.95, respectively. If the yen extends its downtrend, it is likely to find support around 77.00 against the kiwi and 123.00 against the euro.

Against the pound and the U.S. dollar, the yen dropped to 2-day lows of 139.90 and 106.54 from yesterday's closing quotes of 137.31 and 104.62, respectively. The yen may test support near 162.00 against the pound and 108.00 against the greenback.

Against the Australian and the Canadian dollars, the yen slipped to 2-day lows of 79.57 and 80.77 from yesterday's closing quotes of 78.46 and 79.31, respectively. The yen is likely to find support near 82.00 against the aussie and 83.00 against the loonie.

The yen edged down to 107.37 against the Swiss franc, from yesterday's closing value of 105.39. On the downside, 112.00 is seen as the next support level for the yen.

Looking ahead, Eurozone M3 money supply data for June, the first estimate U.K. GDP data for the second quarter are due to be released later in the day.

In the New York session, U.S. durable goods orders and pending home sales data, both for June, are slated for release.

At 2:00 pm ET, the Federal Reserve will announce its decision on monetary policy. The Fed is expected to keep the Federal Funds Rate unchanged at 0.25-0.50 percent.