Investing.com – The U.S. dollar slipped against the yen on Tuesday, as mounting fears over the debt crisis in the euro zone supported safe haven buying, but investors remained wary about the possibility of further intervention by Japan to weaken the yen.
USD/JPY hit 76.46 during late Asian trade, the daily low; the pair subsequently consolidated at 76.51, slipping 0.10%.
The pair was likely to find short-term support at 76.32, Monday’s low and resistance at 76.97, Monday’s high.
Fears over the euro zone debt crisis mounted after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
The yen remained largely unchanged after Japan’s government unveiled a series of measures to soften the impact of the surging yen on the country’s largely export driven economy.
The government said the plan aims to "soften the pain" from the strong yen and keep it from leading to more "hollowing out" of Japanese industry. The government also said it expects the Bank of Japan to take “appropriate and bold” measures to support the economy when needed.
The yen was also higher against the euro, with EUR/JPY shedding 0.27% to hit 104.53.
Later in the day, the U.S. was to publish government data on building permits and housing starts.
USD/JPY hit 76.46 during late Asian trade, the daily low; the pair subsequently consolidated at 76.51, slipping 0.10%.
The pair was likely to find short-term support at 76.32, Monday’s low and resistance at 76.97, Monday’s high.
Fears over the euro zone debt crisis mounted after Standard & Poor’s downgraded its debt rating on Italy by one notch, citing weak economic growth and increasing political difficulties.
Meanwhile, talks to discuss whether Greece has done enough to access its next tranche of bailout funds ended Monday without reaching an agreement. Greece’s finance minister said the discussions would continue late Tuesday, adding that some work still needed to be done.
The yen remained largely unchanged after Japan’s government unveiled a series of measures to soften the impact of the surging yen on the country’s largely export driven economy.
The government said the plan aims to "soften the pain" from the strong yen and keep it from leading to more "hollowing out" of Japanese industry. The government also said it expects the Bank of Japan to take “appropriate and bold” measures to support the economy when needed.
The yen was also higher against the euro, with EUR/JPY shedding 0.27% to hit 104.53.
Later in the day, the U.S. was to publish government data on building permits and housing starts.