Investing.com - The U.S. dollar ended the week higher against the yen on Friday, as an intervention by the Bank of Japan and ongoing concerns over the debt crisis in the euro zone sent the greenback sharply higher.
USD/JPY hit 79.52 on Monday, the pair's highest since August 4; the pair subsequently consolidated at 78.22 by close of trade on Friday, jumping 3.25% over the week.
The pair is likely to find support at 77.62, the low of July 28 and resistance at 78.69, the high of July 26.
The dollar surged to an almost three-month high against the yen on Monday, after Japanese officials launched an intervention to curb the appreciation of the nation's currency.
Japanese Finance Minister Jun Azumi said Tokyo acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because "speculative moves" in the currency failed to reflect Japan’s economic fundamentals.
The greenback extended gains on Tuesday, amid growing concerns over the handling of the debt crisis in the euro zone after Greek Prime minister George Papandreou announced a referendum on the country's latest bailout program, leading Greece to become the main focus of the Group of 20 meetings later in the week.
The greenback rallied again on Friday after German Chancellor Angela Merkel said that few countries in the G-20 had committed to providing more resources for the euro zone's rescue fund.
Investors were also wary ahead of a government confidence vote in Greece, scheduled late Friday evening. Despite strong internal opposition, Papandreou's government passed the vote by a very narrow margin.
Meanwhile, data showed that the U.S. unemployment rate ticked down unexpectedly in October to 9.0% from 9.1% the previous month. The data came after a report showing that non-farm employment rose less-than-expected by 80K in October.
In the week ahead, developments in Greece will remain in focus, as opposition parties are calling for early elections while George Papandreou is pushing for a cross-party government to implement the latest European aid package.
Investors will also be closely watching for a U.S. report on trade balance, as well as the country's weekly report on unemployment claims, while Japan is to publish data on core machinery orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 7
The U.S. is to produce an official report on consumer credit, a leading indicator of consumer spending and confidence.
Tuesday, November 8
In the U.S., Federal Open Market Committee members Narayana Kocherlakota and Charles Plosser are due to speak.
Wednesday, November 9
In the U.S., Federal Reserve Chairman Ben Bernanke is due to deliver welcoming remarks at the Federal Reserve Conference on Small Business and Entrepreneurship during an Economic Recovery. An official report on U.S. crude oil inventories is also to be released later Wednesday.
Thursday, November 10
Japan is to publish government data on core machinery orders, a leading indicator of production.
Meanwhile, the U.S. is to release a report on trade balance as well as weekly data on unemployment claims. Later in the day, government reports are to be released on import prices and federal budget balance.
Friday, November 11
Japan is to release a report on tertiary industry activity, a leading indicator of economic health.
The U.S. is to round up the week with the University of Michigan's preliminary report on consumer sentiment.
USD/JPY hit 79.52 on Monday, the pair's highest since August 4; the pair subsequently consolidated at 78.22 by close of trade on Friday, jumping 3.25% over the week.
The pair is likely to find support at 77.62, the low of July 28 and resistance at 78.69, the high of July 26.
The dollar surged to an almost three-month high against the yen on Monday, after Japanese officials launched an intervention to curb the appreciation of the nation's currency.
Japanese Finance Minister Jun Azumi said Tokyo acted on its own and would keep intervening until it was satisfied with the results. Azumi added that he ordered the intervention because "speculative moves" in the currency failed to reflect Japan’s economic fundamentals.
The greenback extended gains on Tuesday, amid growing concerns over the handling of the debt crisis in the euro zone after Greek Prime minister George Papandreou announced a referendum on the country's latest bailout program, leading Greece to become the main focus of the Group of 20 meetings later in the week.
The greenback rallied again on Friday after German Chancellor Angela Merkel said that few countries in the G-20 had committed to providing more resources for the euro zone's rescue fund.
Investors were also wary ahead of a government confidence vote in Greece, scheduled late Friday evening. Despite strong internal opposition, Papandreou's government passed the vote by a very narrow margin.
Meanwhile, data showed that the U.S. unemployment rate ticked down unexpectedly in October to 9.0% from 9.1% the previous month. The data came after a report showing that non-farm employment rose less-than-expected by 80K in October.
In the week ahead, developments in Greece will remain in focus, as opposition parties are calling for early elections while George Papandreou is pushing for a cross-party government to implement the latest European aid package.
Investors will also be closely watching for a U.S. report on trade balance, as well as the country's weekly report on unemployment claims, while Japan is to publish data on core machinery orders.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 7
The U.S. is to produce an official report on consumer credit, a leading indicator of consumer spending and confidence.
Tuesday, November 8
In the U.S., Federal Open Market Committee members Narayana Kocherlakota and Charles Plosser are due to speak.
Wednesday, November 9
In the U.S., Federal Reserve Chairman Ben Bernanke is due to deliver welcoming remarks at the Federal Reserve Conference on Small Business and Entrepreneurship during an Economic Recovery. An official report on U.S. crude oil inventories is also to be released later Wednesday.
Thursday, November 10
Japan is to publish government data on core machinery orders, a leading indicator of production.
Meanwhile, the U.S. is to release a report on trade balance as well as weekly data on unemployment claims. Later in the day, government reports are to be released on import prices and federal budget balance.
Friday, November 11
Japan is to release a report on tertiary industry activity, a leading indicator of economic health.
The U.S. is to round up the week with the University of Michigan's preliminary report on consumer sentiment.