Investing.com – The U.S. dollar was down against the yen on Monday, retreating from a two-week high as renewed concerns over the handling of the euro zone debt crisis boosted safe have demand for the yen.
USD/JPY pulled back from 77.27 during early European trade, the pair's highest since September 15 to hit 76.81, shedding 0.30%.
The pair was likely to find support at 76.33, the low of September 28 and resistance at 77.58, the high of September 12.
The U.S. dollar weakened against the yen as market sentiment was hit after Greece's Prime Minister said his country would not be able to meet deficit targets this year.
Concerns also grew ahead of a meeting between European officials, later Monday to discuss a potential enhancement of the euro zone's bailout fund, the European Financial Stability Facility. Germany's finance minister voiced his opposition to the project over the weekend.
Earlier in the day, Japan's vice finance minister said that the yen's appreciation did not reflect economic fundamentals in Japan. "There’s no reason the Japanese yen should be targeted as a safe-haven currency or flight-to-safety currency," he said.
Also Monday, the Bank of Japan said the Tankan manufacturing index was in line with expectations in the second quarter, rising to 2 from minus 9 in the previous quarter.
A reading above zero indicates improving conditions and below zero indicates worsening conditions.
Elsewhere, the yen was up against the euro with EUR/JPY dropping 0.62%, to hit 102.50.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.
USD/JPY pulled back from 77.27 during early European trade, the pair's highest since September 15 to hit 76.81, shedding 0.30%.
The pair was likely to find support at 76.33, the low of September 28 and resistance at 77.58, the high of September 12.
The U.S. dollar weakened against the yen as market sentiment was hit after Greece's Prime Minister said his country would not be able to meet deficit targets this year.
Concerns also grew ahead of a meeting between European officials, later Monday to discuss a potential enhancement of the euro zone's bailout fund, the European Financial Stability Facility. Germany's finance minister voiced his opposition to the project over the weekend.
Earlier in the day, Japan's vice finance minister said that the yen's appreciation did not reflect economic fundamentals in Japan. "There’s no reason the Japanese yen should be targeted as a safe-haven currency or flight-to-safety currency," he said.
Also Monday, the Bank of Japan said the Tankan manufacturing index was in line with expectations in the second quarter, rising to 2 from minus 9 in the previous quarter.
A reading above zero indicates improving conditions and below zero indicates worsening conditions.
Elsewhere, the yen was up against the euro with EUR/JPY dropping 0.62%, to hit 102.50.
Later in the day, the U.S. Institute of Supply Management was to publish data on manufacturing activity.