Investing.com - The U.S. dollar edged higher against the yen on Wednesday, but the greenback remained under pressure as sustained concerns over the outlook for global economic growth supported demand for the safe haven yen.
USD/JPY hit 78.30 during European morning trade, the pair's highest since September 20; the pair subsequently consolidated at 78.21, inching up 0.07%.
The pair was likely to find support at 77.98, the low of October 2 and resistance at 78.46, the high of September 20.
The greenback broadly strengthened after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Meanwhile, risk sentiment remained under pressure after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Earlier in the day, a Japanese official reiterated the government's determination to act firmly against excessive yen gains, saying its recent movements have been one-sided and do not reflect the country's economic fundamentals.
The yen was lower against the euro with EUR/JPY adding 0.13%, to hit 101.09.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls and the Institute of Supply Management was to produce data on U.S. service sector activity.
USD/JPY hit 78.30 during European morning trade, the pair's highest since September 20; the pair subsequently consolidated at 78.21, inching up 0.07%.
The pair was likely to find support at 77.98, the low of October 2 and resistance at 78.46, the high of September 20.
The greenback broadly strengthened after official data showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Meanwhile, risk sentiment remained under pressure after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Earlier in the day, a Japanese official reiterated the government's determination to act firmly against excessive yen gains, saying its recent movements have been one-sided and do not reflect the country's economic fundamentals.
The yen was lower against the euro with EUR/JPY adding 0.13%, to hit 101.09.
Later in the day, the U.S. was to produce a report on ADP nonfarm payrolls and the Institute of Supply Management was to produce data on U.S. service sector activity.