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Forex - Yen down vs. dollar amid growing risk sentiment

Published 07/27/2010, 04:06 AM
USD/JPY
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EUR/JPY
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Investing.com – The yen was down against the U.S. dollar on Tuesday, as growing risk appetite dampened demand for the "safe haven" yen after upbeat German economic data.

USD/JPY hit 86.84 during European morning trade, a daily low; the pair subsequently consolidated at 87.27, gaining 0.43%.

The pair was likely to find support at 86.26, the low of July 16 and a 7-month low and resistance at 87.71, Monday's high.

Earlier Tuesday, market sentiment was boosted after data showed German consumer sentiment rose more than expected in July, reaching its highest level since October 2007.

Lingering fears over the euro zone sovereign debt crisis also eased after Deutsche Bank reported better than expected second quarter earnings.

Meanwhile, the yen was down against the euro with EUR/JPY gaining 0.28% to hit 113.20.

Also Tuesday, Japan's finance minister Yoshihiko Noda said that investors welcomed the results of the euro zone bank stress tests but refrained from commenting on the yen’s advance the U.S. dollar and the euro.

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