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Forex - USD/JPY falls to 1-week low in subdued trading

Published 12/22/2010, 05:52 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar slipped to a 1-week low against the yen in subdued trading on Wednesday, amid speculation Japanese exporters bought the currency to bring home funds before the end of the year.

USD/JPY hit 83.41 during European morning trade, the pair’s lowest since December 14; the pair subsequently consolidated at 83.51, shedding 0.28%.

The pair was likely to find support at 82.83, the low of December 14 and resistance at 84.11, the high of December 20.

Earlier in the day, Japan’s Ministry of Finance said in a report that the country’s trade surplus narrowed unexpectedly in November, falling to JPY 0.43 trillion, compared to a trade surplus of JPY 0.58 trillion in October.

Analysts had expected Japan’s trade surplus to widen to JPY 0.63 trillion.

According to the data, Japanese exports rose by 9.1% in November, while imports jumped by 14.2%.

Meanwhile, the Bank of Japan said in its monthly report that growth was likely to slow in 2011 as the yen’s one-sided gains against the dollar threatened the country’s economic recovery.

Elsewhere, the yen was down against the euro, with EUR/JPY adding 0.03% to hit 109.75.

Later in the day, the U.S. was to release a flurry of data, including a final report on its third quarter gross domestic product, as well as data on existing home sales, house prices and crude oil inventories.


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