Investing.com – The U.S. dollar edged higher against the yen on Tuesday, rising to a 2-day high, after the Japanese government downgraded its assessment of the economy for the first time in 20 months.
USD/JPY hit 81.55 during European morning trade, the pair’s highest since October 15; the pair subsequently consolidated at 81.36, gaining 0.11%.
The pair was likely to find support at 80.87, last Friday’s low and a 15-year low and resistance at 82.55, the high of October 8.
Earlier in the day, Japan’s Cabinet Office said the recovery in the economy was "pausing" after saying in recent months that the economy was “picking up”. The economy will stay weak “for a while” due to the rising yen and a slowdown in global demand for Japanese exports the report said.
Government officials said a return to recession could not be ruled out. "If the economy turns out as expected in our main scenario, we may end up describing the current situation as a soft patch," a senior official at the Cabinet Office said.
The yen was also down against the euro, with EUR/JPY gaining 0.05% to hit 113.28.
Later in the day, the U.S. was to publish official data on building permits and housing starts.
USD/JPY hit 81.55 during European morning trade, the pair’s highest since October 15; the pair subsequently consolidated at 81.36, gaining 0.11%.
The pair was likely to find support at 80.87, last Friday’s low and a 15-year low and resistance at 82.55, the high of October 8.
Earlier in the day, Japan’s Cabinet Office said the recovery in the economy was "pausing" after saying in recent months that the economy was “picking up”. The economy will stay weak “for a while” due to the rising yen and a slowdown in global demand for Japanese exports the report said.
Government officials said a return to recession could not be ruled out. "If the economy turns out as expected in our main scenario, we may end up describing the current situation as a soft patch," a senior official at the Cabinet Office said.
The yen was also down against the euro, with EUR/JPY gaining 0.05% to hit 113.28.
Later in the day, the U.S. was to publish official data on building permits and housing starts.