Investing.com - The U.S. dollar edged higher against the yen on Wednesday, but remained within close range of a three-month low as expectations for fresh easing measures by the Federal Reserve and a warning by Moody’s ratings agency weighed on demand for the greenback.
USD/JPY hit 77.97 during early European trade, the daily high; the pair subsequently consolidated at 77.85, adding 0.11%.
The pair was likely to find support at 77.65, the low of June 1 and a four-month low and resistance at 78.26, the high of July 25.
Market sentiment improved amid hopes Germany’s constitutional court will back the euro zone’s bailout fund, the European Stability Mechanism in a ruling expected later in the day.
But the greenback remained under pressure as markets eyed the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.
Adding to pressure on the U.S. dollar, Moody’s said on Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
In Japan, government data showed earlier that core machinery orders rose far more-than-expected in July, climbing 4.6% after a 5.6% increase the previous month.
Analysts had expected core machinery orders to rise 1.5% in July.
A separate report showed that tertiary industry activity fell 0.8% in July, more than the expected 0.4% slide and following a 0.2% rise the previous month.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.27%, to hit 100.23.
Later in the day, the U.S. was to release official data on import prices, followed by a government report on crude oil stockpiles.
USD/JPY hit 77.97 during early European trade, the daily high; the pair subsequently consolidated at 77.85, adding 0.11%.
The pair was likely to find support at 77.65, the low of June 1 and a four-month low and resistance at 78.26, the high of July 25.
Market sentiment improved amid hopes Germany’s constitutional court will back the euro zone’s bailout fund, the European Stability Mechanism in a ruling expected later in the day.
But the greenback remained under pressure as markets eyed the outcome of the Fed’s policy meeting on Thursday, after disappointing U.S. employment data last week fueled fresh expectations for the central bank to add stimulus.
Adding to pressure on the U.S. dollar, Moody’s said on Tuesday that it could downgrade the U.S’s triple-A rating if budget negotiations for 2013 do not result in policy measures which will reduce the country’s debt.
In Japan, government data showed earlier that core machinery orders rose far more-than-expected in July, climbing 4.6% after a 5.6% increase the previous month.
Analysts had expected core machinery orders to rise 1.5% in July.
A separate report showed that tertiary industry activity fell 0.8% in July, more than the expected 0.4% slide and following a 0.2% rise the previous month.
Elsewhere, the yen was lower against the euro with EUR/JPY rising 0.27%, to hit 100.23.
Later in the day, the U.S. was to release official data on import prices, followed by a government report on crude oil stockpiles.