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Forex - USD/JPY down on weak growth data

Published 01/27/2012, 01:44 PM
Updated 01/27/2012, 01:48 PM
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Investing.com - The dollar slid against the yen on Friday after U.S. fourth-quarter gross domestic product figures disappointed markets, while Federal Reserve commitments to keep interest rates low weakened the greenback further against the Japanese currency.

USD/JPY hit 76.74 in Asian trading on Thursday, down 0.92% and up from a session low of 76.66 and off from a high of 77.49.

The pair sought to test support at 76.66, the earlier Friday low, and resistance at 77.49, the earlier high.

The U.S. Commerce Department reported Friday that the U.S. economy grew by 2.8% on year in the fourth quarter of 2011, a little lower than expected.

A good chunk of that growth came from businesses replenishing inventories and not on purchases of capital goods, which would have indicated that growth was gaining more steam.

The disappointing growth figures come two days after the Federal Reserve said interest rates were likely to remain low through the end of 2014, and the combination of both factors sparked a dollar selloff Friday.

The yen, meanwhile, was up against the euro as well as the pound, with EUR/JPY dipping 0.11% to 101.42 and GBP/JPY down 0.69% at 120.69.

Over the weekend, markets will look for signs of deal between Greece and its private creditors.

On Monday, markets will keep an eye on the U.S. Bureau of Economic Analysis figures on personal spending and income as well as data on consumption figures.

In Japan, unemployment and industrial output figures will be released on Monday.

German inflation figures are tentatively due out, while German retail sales and Italian unemployment figures are set to publish as well.






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