Forex - USD/JPY higher after Japan GDP data, focus on Greece

Published 02/13/2012, 03:27 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar edged higher against the yen on Monday, after disappointing Japanese GDP data while sentiment was supported by the approval of new austerity measures in Greece.

USD/JPY hit 77.78 during late Asian trade, the daily high; the pair subsequently consolidated at 77.69, adding 0.10%.

The pair was likely to find support at 77.48, the low of December 9 and resistance at 77.96, the high of December 16.

Preliminary government data showed earlier that Japan’s gross domestic product fell more-than-expected in the fourth quarter, ticking down 0.6% after a 1.4% rise the previous quarter.

Analysts had expected Japan’s GDP to fall 0.3% in the fourth quarter.

A separate report showed that Japanese tertiary industry activity rose more-than-expected in December, adding 1.4% after a 0.6% decline the previous month, surpassing expectations for a 0.9% rise.

Investors were also eyeing the Bank of Japan’s monetary policy statement on Tuesday, amid speculation the central bank may intervene in the foreign exchange market to curb the strong appreciation of the yen.

Meanwhile, sentiment was boosted after Greek lawmakers approved on Sunday a set of spending and wage cuts needed to secure the country’s EUR130 billion bailout package and avoid a sovereign debt default.

The yen was lower against the euro with EUR/JPY advancing 0.69%, to hit 103.12.

Euro zone finance ministers are scheduled to meet later this week to discuss the approval of Greece’s second bailout.


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