Investing.com – The U.S. dollar pared losses against the yen on Wednesday, pulling away from the daily low as the yen remained under pressure after Moody's Investors Service placed Japan's debt ratings under review for a possible downgrade.
USD/JPY pulled back from 81.14, the daily low to hit 81.44 during early European trade, still down 0.09% on the day.
The pair was likely to find support at 80.70, Tuesday’s low and resistance at 82.08, the high of May 26.
The yen weakened broadly on Tuesday, after Moody's said it was reviewing Japan's Aa2 local and foreign currency bond ratings, to which it assigned a negative outlook in February.
The announcement comes after Fitch Ratings said Friday that it had assigned a negative outlook to its AA- rating for Japan.
However, the dollar’s gains were limited after data on Tuesday showed that U.S. house prices fell more-than-expected in March, declining for the ninth consecutive month. Separate reports showed that manufacturing activity in the Midwest area fell significantly more-than-expected last month, while U.S. consumer confidence fell steeply in May.
The yen was also lower against the euro, with EUR/JPY rising 0.21% to hit 117.60.
Later Wednesday, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls. Elsewhere, the U.S. Institute of Supply Management was to publish data on manufacturing activity.
USD/JPY pulled back from 81.14, the daily low to hit 81.44 during early European trade, still down 0.09% on the day.
The pair was likely to find support at 80.70, Tuesday’s low and resistance at 82.08, the high of May 26.
The yen weakened broadly on Tuesday, after Moody's said it was reviewing Japan's Aa2 local and foreign currency bond ratings, to which it assigned a negative outlook in February.
The announcement comes after Fitch Ratings said Friday that it had assigned a negative outlook to its AA- rating for Japan.
However, the dollar’s gains were limited after data on Tuesday showed that U.S. house prices fell more-than-expected in March, declining for the ninth consecutive month. Separate reports showed that manufacturing activity in the Midwest area fell significantly more-than-expected last month, while U.S. consumer confidence fell steeply in May.
The yen was also lower against the euro, with EUR/JPY rising 0.21% to hit 117.60.
Later Wednesday, U.S. payroll processing firm ADP was to publish its report on non-farm payrolls. Elsewhere, the U.S. Institute of Supply Management was to publish data on manufacturing activity.