Investing.com - The U.S. dollar edged lower against the yen on Tuesday, as sentiment remained supported by the European Central Bank’s bond-buying program and amid hopes for fresh stimulus measures by the Federal Reserve.
USD/JPY hit 78.18 during early European trade, the daily low; the pair subsequently consolidated at 78.21, edging down 0.09%.
The pair was likely to find support at 78.00, the low of September 7 and resistance at 78.39, the high of September 3.
Market sentiment remained supported after ECB President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Investors were cautious however, as Germany’s constitutional court was to decide on Tuesday whether to delay its ruling on the euro zone’s bailout fund, the European Stability Mechanism, initially scheduled on Wednesday.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
In Japan, government data showed earlier that the index of manufacturing activity rose unexpectedly in the third quarter, ticking up to 2.5 from a reading of minus 5.7 in the previous quarter.
Analysts had expected the index to decline to minus 6.1 in the third quarter.
Elsewhere, the euro was higher against the yen with EUR/JPY rising 0.29%, to hit 100.17.
Later in the day, the U.S. was to produce a report on trade balance.
USD/JPY hit 78.18 during early European trade, the daily low; the pair subsequently consolidated at 78.21, edging down 0.09%.
The pair was likely to find support at 78.00, the low of September 7 and resistance at 78.39, the high of September 3.
Market sentiment remained supported after ECB President Mario Draghi unveiled last week details of a bond purchasing program aimed at stemming the debt crisis in the euro zone, dubbed Outright Monetary Transactions.
Investors were cautious however, as Germany’s constitutional court was to decide on Tuesday whether to delay its ruling on the euro zone’s bailout fund, the European Stability Mechanism, initially scheduled on Wednesday.
Meanwhile, markets continued to eye the outcome of the Fed’s policy meeting on Thursday, amid fresh speculation that the U.S. central bank may announce a third round of quantitative easing to boost growth.
In Japan, government data showed earlier that the index of manufacturing activity rose unexpectedly in the third quarter, ticking up to 2.5 from a reading of minus 5.7 in the previous quarter.
Analysts had expected the index to decline to minus 6.1 in the third quarter.
Elsewhere, the euro was higher against the yen with EUR/JPY rising 0.29%, to hit 100.17.
Later in the day, the U.S. was to produce a report on trade balance.