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Forex - Dollar pushes higher against yen

Published 03/20/2012, 04:29 AM
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EUR/JPY
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Investing.com - The U.S. dollar pushed higher against the yen in thin trade on Tuesday, as concerns over a slowdown in growth in China curbed demand for Asian and growth linked currencies, while markets in Japan remained closed for a holiday.
 
USD/JPY hit 83.73 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 83.68, gaining 0.40%.
 
The pair was likely to find support at 83.01, Monday’s low and resistance at 84.17, the high of March 15 and an 11-month high.
 
Concerns over a slowdown in China re-emerged earlier after the world’s largest miner BHP Billiton said earlier that Chinese demand for iron ore was "flattening out," sparking fears that commodity prices will decline.
 
Meanwhile, trading in the yen remained muted, as markets in Japan were closed for a national holiday.
 
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, in order to shore up economic growth.
 
The yen was also lower against the euro, with EUR/JPY rising 0.21% to hit 110.56.
 
Later in the day, the U.S. was to produce official data on building permits and housing starts. Meanwhile, Federal Reserve Chairman Ben Bernanke was to speak at an event in Washington; his comments would be closely watched.


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