Investing.com - The dollar moved higher against the yen on Wednesday after the White House said President Barack Obama will announce his nomination of Federal Reserve Vice Chairwoman Janet Yellen to head the U.S. central bank later Wednesday.
USD/JPY hit 97.47 during late Asian trade, the highest since Friday; the pair subsequently consolidated at 97.28, gaining 0.43%.
The pair was likely to find support at 96.56, Tuesday’s low and a two-month low and resistance at 97.80, the high of August 28.
The dollar found support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard warned Tuesday that a failure to raise the U.S. debt ceiling could potentially lead to “major disruptions” in financial markets in the U.S. and abroad.
The yen was slightly lower against the euro, with EUR/JPY rising 0.14% to 131.66.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.
USD/JPY hit 97.47 during late Asian trade, the highest since Friday; the pair subsequently consolidated at 97.28, gaining 0.43%.
The pair was likely to find support at 96.56, Tuesday’s low and a two-month low and resistance at 97.80, the high of August 28.
The dollar found support ahead of Ms. Yellen’s nomination amid expectations that under her leadership Fed policy could remain accommodative for some time. If Ms. Yellen’s nomination is confirmed by the Senate, she will succeed Chairman Ben Bernanke, whose term ends January 31.
But investors remained cautious as a partial U.S. government shutdown dragged on into a second week, with few signs of progress towards a resolution ahead of an October 17 deadline to avoid a U.S. sovereign default.
International Monetary Fund Chief Economist Olivier Blanchard warned Tuesday that a failure to raise the U.S. debt ceiling could potentially lead to “major disruptions” in financial markets in the U.S. and abroad.
The yen was slightly lower against the euro, with EUR/JPY rising 0.14% to 131.66.
Investors were looking ahead to the minutes of the Fed’s September meeting later Wednesday, after the U.S. central bank surprised markets with a decision to keep its stimulus program on track.