Investing.com - The U.S. dollar eased off a one-month low against the yen on Tuesday, after Japan’s finance minister reiterated that the government is ready to intervene in markets to stem the excessive appreciation of the yen.
USD/JPY hit 78.99 during late Asian trade, the session high; the pair subsequently consolidated at 78.92, edging up 0.08%.
The pair was likely to find near-term support at 78.67, Monday’s low and a one-month low and resistance at 79.27, Monday’s high.
Speaking earlier, Japanese Finance Minister Jun Azumi said the yen’s strength did not reflect economic fundamentals in Japan and indicated that the government was prepared to intervene to protect the country’s largely export driven economy from the negative effects of the stronger yen.
"Sudden yen gains or excessive currency moves could harm the economy. We will carefully watch the market and will take firm measures on currencies when needed," he said.
The greenback remained under pressure ahead of testimony to the Senate by Federal Reserve Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
The yen was lower against the euro, with EUR/JPY up 0.32% to 97.08.
Later Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.
USD/JPY hit 78.99 during late Asian trade, the session high; the pair subsequently consolidated at 78.92, edging up 0.08%.
The pair was likely to find near-term support at 78.67, Monday’s low and a one-month low and resistance at 79.27, Monday’s high.
Speaking earlier, Japanese Finance Minister Jun Azumi said the yen’s strength did not reflect economic fundamentals in Japan and indicated that the government was prepared to intervene to protect the country’s largely export driven economy from the negative effects of the stronger yen.
"Sudden yen gains or excessive currency moves could harm the economy. We will carefully watch the market and will take firm measures on currencies when needed," he said.
The greenback remained under pressure ahead of testimony to the Senate by Federal Reserve Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
The yen was lower against the euro, with EUR/JPY up 0.32% to 97.08.
Later Tuesday, the U.S. was to publish official data on consumer price inflation, as well as reports on the capacity utilization rate and industrial production.