Investing.com - The U.S. dollar was higher against the yen on Wednesday, as safe haven demand found support after a meeting of euro zone leaders failed to reassure markets while comments from the Bank of Japan weighed on the yen.
USD/JPY hit 78.11 during late Asian trade, the daily high; the pair subsequently consolidated at 77.98, easing up 0.06%.
The pair was likely to find support at 77.61, Tuesday’s low and resistance at 77.93, the high of November 2.
At a meeting on Tuesday, euro zone finance ministers approved measures to increase the lending capacity of the European Financial Stability Facility, the bloc's bailout fund.
One of the measures will create "protection certificates" to be attached to new bonds issued by indebted euro zone countries. The certificates would entitle holders to claim 20% to 30% of the bond's value in the event of a sovereign default.
The ministers also signed off on Greece’s next tranche of bailout aid.
Meanwhile, the yen came under pressure after Bank of Japan Deputy Governor Kiyohiko Nishimura said that Japanese policymakers must take resolute action if currency market moves are out of line with economic fundamentals.
Earlier Wednesday, preliminary data showed that industrial production in Japan rose more-than-expected in October, climbing 2.4% from a 3.3% decline the previous month.
Analysts had expected industrial production to rise 1.1% in October.
Elsewhere, the yen was up against the euro with EUR/JPY shedding 0.16%, to hit 103.58.
Later in the day, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.
USD/JPY hit 78.11 during late Asian trade, the daily high; the pair subsequently consolidated at 77.98, easing up 0.06%.
The pair was likely to find support at 77.61, Tuesday’s low and resistance at 77.93, the high of November 2.
At a meeting on Tuesday, euro zone finance ministers approved measures to increase the lending capacity of the European Financial Stability Facility, the bloc's bailout fund.
One of the measures will create "protection certificates" to be attached to new bonds issued by indebted euro zone countries. The certificates would entitle holders to claim 20% to 30% of the bond's value in the event of a sovereign default.
The ministers also signed off on Greece’s next tranche of bailout aid.
Meanwhile, the yen came under pressure after Bank of Japan Deputy Governor Kiyohiko Nishimura said that Japanese policymakers must take resolute action if currency market moves are out of line with economic fundamentals.
Earlier Wednesday, preliminary data showed that industrial production in Japan rose more-than-expected in October, climbing 2.4% from a 3.3% decline the previous month.
Analysts had expected industrial production to rise 1.1% in October.
Elsewhere, the yen was up against the euro with EUR/JPY shedding 0.16%, to hit 103.58.
Later in the day, the U.S. was to release a closely watched report on non-farm payrolls compiled by payroll processing firm ADP, as well as data on manufacturing activity in the Chicago area and pending home sales.