Investing.com – The yen fell against the U.S. dollar on Wednesday, erasing recent gains as renewed optimism about the strength of the global economic recovery reduced demand for the “safe haven” yen.
USD/JPY hit 91.74 during early European trade, a 2-day high; the pair subsequently consolidated at around 91.62, gaining 0.17%.
The pair was likely to find short term support at 90.84, the low of June 10 and resistance at 92.88, the high of June 4.
Earlier in the day, media outlets reported that new Japanese Prime Minister Naoto Kan may have to raise taxes by as much as JPY 7 trillion in an attempt to contain the world’s largest public debt and end what he calls Japan’s “unsustainable” dependency on borrowing.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.08% to hit 112.84.
Later in the day, the U.S. was to release a key report on building permits as well as data on housing starts, mortgage applications and industrial production. The U.S. Energy Information Administration, meanwhile, was also to publish data on crude oil inventories.
Also Wednesday, the U.S. was to release heavily anticipated PPI data, and U.S. Federal Reserve Chairman Ben Bernanke was scheduled to speak at an event in New York.
USD/JPY hit 91.74 during early European trade, a 2-day high; the pair subsequently consolidated at around 91.62, gaining 0.17%.
The pair was likely to find short term support at 90.84, the low of June 10 and resistance at 92.88, the high of June 4.
Earlier in the day, media outlets reported that new Japanese Prime Minister Naoto Kan may have to raise taxes by as much as JPY 7 trillion in an attempt to contain the world’s largest public debt and end what he calls Japan’s “unsustainable” dependency on borrowing.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.08% to hit 112.84.
Later in the day, the U.S. was to release a key report on building permits as well as data on housing starts, mortgage applications and industrial production. The U.S. Energy Information Administration, meanwhile, was also to publish data on crude oil inventories.
Also Wednesday, the U.S. was to release heavily anticipated PPI data, and U.S. Federal Reserve Chairman Ben Bernanke was scheduled to speak at an event in New York.