Investing.com – The U.S. dollar was down against the yen on Wednesday, failing below 85.00 to hit a 5-day low, amid concerns that Japanese officials would intervene in currency markets to stem the yen's gains.
USD/JPY hit 84.78 during early European trade, the pair's lowest since last Wednesday, the pair subsequently consolidated at 84.88, shedding 0.27%.
The pair was likely to find short-term support at 84.00 and resistance at 85.92, the high of September 17.
One week ago, Japanese authorities intervened in currency markets, selling an estimated two trillion yen after the yen soared to a 15 year high of JPY 82.87 against the U.S. dollar.
While Japanese government officials have repeatedly denied that there are set limits for the yen's value, markets have held the view that a level of JPY 85.00 was the lower end of what Japan's government would tolerate.
Late Tuesday, Japanese Prime Minister Naoto Kan said that his government was prepared to intervene in currency markets again, saying, "If there is a drastic change (in the currency), such intervention is unavoidable."
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.12% to hit 113.01.
Late Tuesday, Federal Reserve officials said in a statement that that the U.S. economic recovery would remain modest in the near term.
USD/JPY hit 84.78 during early European trade, the pair's lowest since last Wednesday, the pair subsequently consolidated at 84.88, shedding 0.27%.
The pair was likely to find short-term support at 84.00 and resistance at 85.92, the high of September 17.
One week ago, Japanese authorities intervened in currency markets, selling an estimated two trillion yen after the yen soared to a 15 year high of JPY 82.87 against the U.S. dollar.
While Japanese government officials have repeatedly denied that there are set limits for the yen's value, markets have held the view that a level of JPY 85.00 was the lower end of what Japan's government would tolerate.
Late Tuesday, Japanese Prime Minister Naoto Kan said that his government was prepared to intervene in currency markets again, saying, "If there is a drastic change (in the currency), such intervention is unavoidable."
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.12% to hit 113.01.
Late Tuesday, Federal Reserve officials said in a statement that that the U.S. economic recovery would remain modest in the near term.