Investing.com - The U.S. dollar declined against the yen on Monday, falling to a two-week low as ongoing concerns over Italy's ability to tackle its debt crisis ahead of a government bond auction boosted demand for the safe haven yen.
USD/JPY hit 77.01 during European morning trade, the pair's lowest since October 31; the pair subsequently consolidated at 77.02, shedding 0.14%.
The pair was likely to find support at 76.59, the low of October 17 and resistance at 77.67, the high of November 11.
The dollar came under pressure as markets eyed a EUR3 billion Italian 5-year bond auction, in what was seen as a key test of investor confidence in Italian debt.
Market sentiment had briefly improved earlier, after Italy's president appointed former European Commissioner Mario Monti to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole euro zone.
Monti must present the names of his Cabinet ministers to Italy’s President Giorgio Napolitano before he can be sworn in.
Also Monday, Greece’s finance minister said his priority was to ensure the country receives its sixth tranche of bailout funds after Prime Minister Lucas Papademos was sworn in.
The yen was higher against the euro with EUR/JPY declining 0.35%, to hit 105.70.
Earlier Monday, a preliminary government report said that Japan's GDP rose 1.5% in the third quarter, in line with expectations. The previous quarter's figure was revised down from minus 0.3% to minus 0.5%.
USD/JPY hit 77.01 during European morning trade, the pair's lowest since October 31; the pair subsequently consolidated at 77.02, shedding 0.14%.
The pair was likely to find support at 76.59, the low of October 17 and resistance at 77.67, the high of November 11.
The dollar came under pressure as markets eyed a EUR3 billion Italian 5-year bond auction, in what was seen as a key test of investor confidence in Italian debt.
Market sentiment had briefly improved earlier, after Italy's president appointed former European Commissioner Mario Monti to head a new government charged with implementing urgent reforms to end a crisis that has endangered the whole euro zone.
Monti must present the names of his Cabinet ministers to Italy’s President Giorgio Napolitano before he can be sworn in.
Also Monday, Greece’s finance minister said his priority was to ensure the country receives its sixth tranche of bailout funds after Prime Minister Lucas Papademos was sworn in.
The yen was higher against the euro with EUR/JPY declining 0.35%, to hit 105.70.
Earlier Monday, a preliminary government report said that Japan's GDP rose 1.5% in the third quarter, in line with expectations. The previous quarter's figure was revised down from minus 0.3% to minus 0.5%.