Investing.com – The U.S. dollar edged higher against the yen on Thursday, but the pair continued to trade in a tight range as investors remained focused on developments in the euro zone ahead of a Spanish debt auction later in the day.
USD/JPY hit 76.80 Asian trade, the daily high; the pair subsequently consolidated at 76.72, edging up 0.12%.
The pair was likely to find short-term support at 76.41, the low of August 31 and resistance at 77.24, Tuesday’s high.
Concerns over a debt default by Greece eased on Wednesday, after French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a joint statement saying they were “convinced the future of Greece is in the euro zone.”
The statement came after the leaders held a telephone conference with Greek Prime Minister George Papandreou.
Spain’s Treasury was expected to auction up to EUR4 billion in three-year bonds later in the day and was expected to pay a heavy premium after Italy saw borrowing costs surge to euro-lifetime highs in a debt auction earlier in the week.
Meanwhile, speculation over a possible downgrade of Italy’s sovereign debt rating by Moody’s also weighed.
The yen was also lower against the euro, with EUR/JPY easing up 0.20% to hit 105.61.
Also Thursday, Japanese Prime Minister Yoshihiko Noda reiterated that Japan will take steps to curb the appreciation of the yen when necessary.
"I am worried about the fact that the yen's one-sided move to the upside is continuing," Noda said.
USD/JPY hit 76.80 Asian trade, the daily high; the pair subsequently consolidated at 76.72, edging up 0.12%.
The pair was likely to find short-term support at 76.41, the low of August 31 and resistance at 77.24, Tuesday’s high.
Concerns over a debt default by Greece eased on Wednesday, after French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a joint statement saying they were “convinced the future of Greece is in the euro zone.”
The statement came after the leaders held a telephone conference with Greek Prime Minister George Papandreou.
Spain’s Treasury was expected to auction up to EUR4 billion in three-year bonds later in the day and was expected to pay a heavy premium after Italy saw borrowing costs surge to euro-lifetime highs in a debt auction earlier in the week.
Meanwhile, speculation over a possible downgrade of Italy’s sovereign debt rating by Moody’s also weighed.
The yen was also lower against the euro, with EUR/JPY easing up 0.20% to hit 105.61.
Also Thursday, Japanese Prime Minister Yoshihiko Noda reiterated that Japan will take steps to curb the appreciation of the yen when necessary.
"I am worried about the fact that the yen's one-sided move to the upside is continuing," Noda said.