Investing.com – The yen was up against the U.S. dollar on Tuesday, after Japan’s government announced broad reaching public spending cuts designed to rein the world’s largest public debt.
USD/JPY hit 91.1 during early European trade, the pair subsequently consolidated at 90.79, shedding 0.28%. The pair was likely to find support at 89.80, the low of May 27, and short-term resistance at 92.11, the high of June 14.
Earlier in the day, Japan’s finance minister, Yoshihiko Noda, announced that public spending would be capped at 71 trillion yen over the next three years and said the government will achieve the targets “by conducting reforms of spending and revenue.”
The government has also pledged taxation reform in an attempt to balance the country’s budget by 2020.
The yen was also up against the euro, with EUR/JPY shedding 0.3% to hit 111.78.
Later in the day, the U.S. was to release key data on existing home sales, a leading indicator of economic health, while in Europe, the Ifo research group was due to publish a key report on German business sentiment.
USD/JPY hit 91.1 during early European trade, the pair subsequently consolidated at 90.79, shedding 0.28%. The pair was likely to find support at 89.80, the low of May 27, and short-term resistance at 92.11, the high of June 14.
Earlier in the day, Japan’s finance minister, Yoshihiko Noda, announced that public spending would be capped at 71 trillion yen over the next three years and said the government will achieve the targets “by conducting reforms of spending and revenue.”
The government has also pledged taxation reform in an attempt to balance the country’s budget by 2020.
The yen was also up against the euro, with EUR/JPY shedding 0.3% to hit 111.78.
Later in the day, the U.S. was to release key data on existing home sales, a leading indicator of economic health, while in Europe, the Ifo research group was due to publish a key report on German business sentiment.