Investing.com - The dollar fell against the yen on Tuesday after a large Japanese chipmaker declared bankruptcy, while investors also decided the yen had weakened enough and became ripe for bottom-fishing.
In Asian trading on Tuesday, USD/JPY hit 80.16, down 0.56% up from a low of 80.02 and off a high of 80.61.
The pair sought to test support at 79.74, Friday's low, and resistance at 81.67, Monday's high.
The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency.
Such easing measures worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.
However Japanese chipmaker Elpida Memory's bankruptcy coupled with high oil prices sparked a sell-off in equities markets on Tuesday and a dash back to the safety of the yen, which sent the greenback weakening against the Japanese currency.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY losing 0.45% to 126.98 and EUR/JPY down 0.38% at 107.58.
Later Tuesday, Japan will release industrial output and manufacturing data.
Also on Tuesday, the U.S. is to produce official data on durable goods orders, a leading indicator of production, followed by industry data on house price inflation and consumer confidence.
In Asian trading on Tuesday, USD/JPY hit 80.16, down 0.56% up from a low of 80.02 and off a high of 80.61.
The pair sought to test support at 79.74, Friday's low, and resistance at 81.67, Monday's high.
The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency.
Such easing measures worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.
However Japanese chipmaker Elpida Memory's bankruptcy coupled with high oil prices sparked a sell-off in equities markets on Tuesday and a dash back to the safety of the yen, which sent the greenback weakening against the Japanese currency.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY losing 0.45% to 126.98 and EUR/JPY down 0.38% at 107.58.
Later Tuesday, Japan will release industrial output and manufacturing data.
Also on Tuesday, the U.S. is to produce official data on durable goods orders, a leading indicator of production, followed by industry data on house price inflation and consumer confidence.