Investing.com - The U.S. dollar was sharply lower against the yen on Monday, as investors sold the greenback to lock in gains while markets focused on the signing off of a Greek debt swap deal later in the week.
USD/JPY hit 81.16 during early European trade, the daily low; the pair subsequently consolidated at 81.28, sliding 0.65%.
The pair was likely to find support at 80.83, the low of March 1 and resistance at 81.86, the high of March 2 and a six-month high.
The yen has been under pressure in recent weeks following a surprise easing by the Bank of Japan and a fall in the country’s current account surplus.
Meanwhile, investors eyed the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal that will see the nominal value of their holdings cut by 53.5%.
Markets were also jittery after Spain’s government raised its budget deficit target to 5.8% of gross domestic product for 2012, compared to a previous target of 4.4% on Friday, sparking concerns over the viability of the European Union’s new fiscal treaty.
The yen was also sharply higher against the euro with EUR/JPY dropping 0.74%, to hit 107.20.
Later in the day, the U.S. was to produce government data on factory orders, while the Institute of Supply Management was to release a report on service sector growth.
USD/JPY hit 81.16 during early European trade, the daily low; the pair subsequently consolidated at 81.28, sliding 0.65%.
The pair was likely to find support at 80.83, the low of March 1 and resistance at 81.86, the high of March 2 and a six-month high.
The yen has been under pressure in recent weeks following a surprise easing by the Bank of Japan and a fall in the country’s current account surplus.
Meanwhile, investors eyed the March 8 deadline for bondholders to join the agreement under which they will exchange their existing Greek government bonds for new paper in a swap deal that will see the nominal value of their holdings cut by 53.5%.
Markets were also jittery after Spain’s government raised its budget deficit target to 5.8% of gross domestic product for 2012, compared to a previous target of 4.4% on Friday, sparking concerns over the viability of the European Union’s new fiscal treaty.
The yen was also sharply higher against the euro with EUR/JPY dropping 0.74%, to hit 107.20.
Later in the day, the U.S. was to produce government data on factory orders, while the Institute of Supply Management was to release a report on service sector growth.