Investing.com - The U.S. dollar was lower against the yen on Thursday, as investors remained wary amid speculation over a potential series of credit-rating downgrades in the euro zone.
USD/JPY hit 77.91 during early European trade, the pair’s lowest since December 13; the pair subsequently consolidated at 77.96, shedding 0.14%.
The pair was likely to find support at 77.68, the low of December 5 and resistance at 78.27, the high of November 29.
Sentiment has been undermined this week, after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.
Markets were also jittery after Italy’s Treasury sold EUR3 billion of five-year government bonds on Wednesday, at an average yield of 6.47%, a euro era high, after paying 6.29% at a similar auction in November.
Meanwhile, investors were eyeing an auction of Spanish government debt later in the day, as well as a speech by European Central Bank President Mario Draghi.
Elsewhere, the Bank of Japan said its Tankan manufacturing index declined more than expected in the fourth quarter, falling to minus 4 from a reading at 2 the previous quarter.
Analysts had expected the index to fall to minus 2 in the fourth quarter.
The report also showed that the Tankan non-manufacturing index rose more-than-expected to 4, from a reading at 1 in the third quarter.
The yen was lower against the euro with EUR/JPY edging up 0.15%, to trade at 101.50.
Later in the day, The U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.
USD/JPY hit 77.91 during early European trade, the pair’s lowest since December 13; the pair subsequently consolidated at 77.96, shedding 0.14%.
The pair was likely to find support at 77.68, the low of December 5 and resistance at 78.27, the high of November 29.
Sentiment has been undermined this week, after last Friday’s European Union summit failed to result in any decisive measures to tackle the debt crisis in the region, sparking fears over mass ratings cuts across the euro zone.
Markets were also jittery after Italy’s Treasury sold EUR3 billion of five-year government bonds on Wednesday, at an average yield of 6.47%, a euro era high, after paying 6.29% at a similar auction in November.
Meanwhile, investors were eyeing an auction of Spanish government debt later in the day, as well as a speech by European Central Bank President Mario Draghi.
Elsewhere, the Bank of Japan said its Tankan manufacturing index declined more than expected in the fourth quarter, falling to minus 4 from a reading at 2 the previous quarter.
Analysts had expected the index to fall to minus 2 in the fourth quarter.
The report also showed that the Tankan non-manufacturing index rose more-than-expected to 4, from a reading at 1 in the third quarter.
The yen was lower against the euro with EUR/JPY edging up 0.15%, to trade at 101.50.
Later in the day, The U.S. was to produce its weekly report on initial jobless claims, as well as government data on producer price inflation and manufacturing activity in Philadelphia and New York State.