NEW YORK, April 26 (Reuters) - The dollar extended steep losses versus the yen on Friday as technical factors kicked in after the Bank of Japan left policy unchanged and after data showed U.S. economic growth expanded in the first quarter more slowly than economists had projected.
The dollar fell as low 97.54 yen and last traded at 97.62, down 1.6 percent on the day, according to Reuters data.
“The sell-off is technically driven,” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington D.C.
“The BoJ meeting did not change anything, the weak GDP data this morning and the failure of the dollar to break 100 yen has given people a pretty good excuse to sell the dollar,” he said.
Stop-loss orders were also triggered, causing the selling to accelerate, which in turned triggered more selling and short covering.