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Forex - USD/JPY eases up after Japan reiterates warning

Published 11/02/2010, 05:06 AM
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EUR/JPY
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Investing.com – The U.S. dollar was up against the yen on Tuesday, easing to a daily high after Japan’s finance minister reiterated his warning about sharp moves in the currency market.

USD/JPY hit 80.75 during early European trade, the daily high; the pair subsequently consolidated at 80.64, gaining 0.15%.

The pair was likely to find support at 79.75 the low of April 19, 1995 and the all-time low and resistance at 81.06, last Friday’s high.

Earlier in the day, Japanese Finance Minister Yoshihiko Noda said that volatility in exchange rates could damage the country’s faltering economic recovery. He said the Japanese currency strengthened in a "one-sided" manner on Friday and Monday before adding that the government "will take decisive steps when necessary."

Noda made the comments after Prime Minister Naoto Kan's cabinet submitted an extra budget with 4.4 trillion yen in spending to bolster Japan’s economy.

The yen was also down against the euro, with EUR/JPY gaining 0.64% to hit 112.54.

Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing.

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