Forex - USD/JPY edges lower, eyes on potential BOJ intervention

Published 02/02/2012, 03:21 AM
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EUR/JPY
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Investing.com - The U.S. dollar was trading close to a three-month low against the yen on Thursday, as a flurry of strong economic data on Wednesday eased concerns over the outlook for the global economy, sending the greenback broadly lower.

USD/JPY 76.11 during late Asian trade, the daily low; the pair subsequently consolidated at 76.15, retreating 0.09%.

The pair was likely to find support at 76.02, Wednesday’s low and resistance at 76.29, the high of October 25.

The safe haven dollar came under pressure after manufacturing data from Germany, the U.S. and China remained resilient on Wednesday, while expectations that the Federal Reserve will keep rates close to record lows for another two years weighed.

Risk sentiment was also supported by indications that negotiations with Greece’s creditors are very close to being finalized, but concerns have persisted that a debt swap deal with the country’s private bondholders will not go far enough to reduce the country’s debt load.

Earlier in the day, Japanese Finance Minister Jun Azumi reiterated that he remains prepared to take firm measures against the appreciation of the yen if necessary.

Elsewhere, the yen was higher against the euro with EUR/JPY declining 0.20%, to hit 100.10.

Later in the day, Federal Reserve Chairman Ben Bernanke was to testify before the House of Representatives budget committee. The U.S. was also to produce government data on initial jobless claims.


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