Investing.com - The U.S. dollar touched a fresh three-month low against the yen on Wednesday, fanning concerns that Japan may intervene in the foreign exchange market to curb the appreciation of the strong yen.
USD/JPY hit 76.12 during late Asian trade, the pair’s lowest since October 31; the pair subsequently consolidated at 76.18, slipping 0.10%.
The pair was likely to find short-term support at 75.98, the low of October 24 and resistance at 76.41, Tuesday’s high.
Demand for the safe haven yen remained supported as negotiations over a debt restructuring deal between Greece and its private creditors dragged on and concerns mounted over the next set of talks between Greece and its public lenders.
Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
The dollar found support as expectations for an intervention to weaken the yen by Japan prevented further losses.
On Tuesday, Japanese Finance Minister Jun Azumi reiterated a warning that he will take "decisive steps" if speculators push the yen up too sharply.
Japanese authorities mounted a yen weakening intervention on October 31 after the yen fell to a post-war low of 75.31 against the greenback.
The yen was also higher against the euro, with EUR/JPY shedding 0.20% to hit 99.58.
Later in the day, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.
USD/JPY hit 76.12 during late Asian trade, the pair’s lowest since October 31; the pair subsequently consolidated at 76.18, slipping 0.10%.
The pair was likely to find short-term support at 75.98, the low of October 24 and resistance at 76.41, Tuesday’s high.
Demand for the safe haven yen remained supported as negotiations over a debt restructuring deal between Greece and its private creditors dragged on and concerns mounted over the next set of talks between Greece and its public lenders.
Risk appetite was also hit after weaker-than-expected U.S. data on manufacturing and consumer confidence on Tuesday underlined concerns over the outlook for the U.S. economic recovery, after the Federal Reserve pushed back the timing of likely interest rate hike to mid-2014 last week.
The dollar found support as expectations for an intervention to weaken the yen by Japan prevented further losses.
On Tuesday, Japanese Finance Minister Jun Azumi reiterated a warning that he will take "decisive steps" if speculators push the yen up too sharply.
Japanese authorities mounted a yen weakening intervention on October 31 after the yen fell to a post-war low of 75.31 against the greenback.
The yen was also higher against the euro, with EUR/JPY shedding 0.20% to hit 99.58.
Later in the day, the U.S. was to release industry data on non-farm employment change, as well as a report by the Institute for Supply Management on manufacturing activity.