Investing.com - The U.S. dollar moved modestly lower against the Japanese yen in Asian trade Tuesday, as a commitment from French and German leaders to strengthen the region’s banks cooled enthusiasm for the safe-haven greenback.
In mid-day Asian trade USD/JPY hit 76.62, the day’s low; the pair subsequently consolidated at 76.66, slipping 0.03%.
The pair was likely to find support at 76.10, the low of September 22, and resistance at 77.21, last Monday’s high.
Over the weekend, German Chancellor Angela Merkel and French President Nicolas Sarkozy, said that they had agreed to strengthen European banks and that specifics of a package of measures would be revealed by the end of the month.
Meanwhile, the troika of international lenders, the European Union, the International Monetary Fund and the European Central Bank were set to conclude review meetings with Greek officials in Athens.
A favorable report could clear the way for the release of a USD10.8 billion rescue package for Greece it needs by the middle of next month in order to to avoid debt default.
Wall Street shares reacted positively to the news from Europe, with the Dow Jones Industrial Average gaining 2.97%, the Nasdaq Composite Index jumped 3.5%, and the S&P 500 was up sharply by 3.41%.
Japan’s Finance Ministry, earlier Monday, reported that Japan’s current account surplus fell by 64.3% year on year, to USD5.3 billion in the month of August.
Meanwhile, the yen moved lower against euro but up against the British pound with EUR/JPY higher by 0.03% to hit 104.61, and GBP/JPY lower by 0.12% to hit 119.96.
The Bank of Japan’s monthly report on the economy was due out later Tuesday.