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Forex - USD/JPY hits 2-day low amid fresh U.S. recovery fears

Published 07/29/2010, 04:31 AM
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Investing.com – The U.S. dollar fell to a 2-day low against the yen on Thursday, amid fresh fears that U.S. economic growth is losing momentum after the Federal Reserves Beige Book indicated patchy U.S. growth.

USD/JPY hit 87.11 during European morning trade, the pair's lowest since July 27; the pair subsequently consolidated at 87.30, shedding 0.19%.

The pair was likely to find support at 86.26, the low of 16 and a 7-month low and resistance at 88.40, the high of July 15.

Late Wednesday, U.S. Fed's Beige Book, a summary of national economic conditions, said the economy grew unevenly in recent weeks as growth slowed in some regions and the housing market slowed.

The Fed said "Among those districts reporting improvements in economic activity, a number of them noted that the increases were modest, and two districts, Atlanta and Chicago, said the pace of economic activity had slowed recently".

Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.37% to hit 114.14.

Also Wednesday, data showed that Japanese retail sales rose 3.2% in June after advancing a revised 2.9% in May. The increase was broadly in line with expectations.

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