Investing.com - The U.S. dollar edged higher against the yen on Thursday ahead of a Spanish debt auction later in the day as sustained concerns over euro zone sovereign funding supported safe haven demand.
USD/JPY hit 76.95 during late Asian trade, the daily high; the pair subsequently consolidated at 76.96, gaining 0.12%.
The pair was likely to find support at 76.64, the low of January 5 and resistance at 77.14, the high of November 16.
Spain was due to sell up to EUR5 billion euros of government bonds maturing in 2015 and 2016 a day before Italy’s Treasury planned to auction EUR4.75 billion of five-year bonds.
The yield on Spanish 10-year bonds was at 5.36%, while the yield on 10-year Italian government bonds remained just the 7% threshold seen as unsustainable, at 7.04%.
Markets were also jittery ahead of the European Central Bank’s policy meeting later Thursday. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
On Wednesday, Fitch ratings agency said the ECB should ramp up its buying of troubled euro zone debt to support Italy and prevent a "cataclysmic" collapse of the euro.
Earlier in the day, the Bank of Japan’s chief economist said that the country’s economy will see flat growth for the time being before resuming a moderate recovery later this year as the euro zone’s debt crisis and an overseas slowdown weigh on exports.
Elsewhere, the yen was lower against the euro with EUR/JPY advancing 0.19%, to hit 97.84.
Later in the day, the U.S. was to release official data on retail sales and initial jobless claims.
USD/JPY hit 76.95 during late Asian trade, the daily high; the pair subsequently consolidated at 76.96, gaining 0.12%.
The pair was likely to find support at 76.64, the low of January 5 and resistance at 77.14, the high of November 16.
Spain was due to sell up to EUR5 billion euros of government bonds maturing in 2015 and 2016 a day before Italy’s Treasury planned to auction EUR4.75 billion of five-year bonds.
The yield on Spanish 10-year bonds was at 5.36%, while the yield on 10-year Italian government bonds remained just the 7% threshold seen as unsustainable, at 7.04%.
Markets were also jittery ahead of the European Central Bank’s policy meeting later Thursday. The ECB was expected to keep rates unchanged at 1% and to reiterate that governments in the euro zone must step up efforts to tackle the region’s debt crisis.
On Wednesday, Fitch ratings agency said the ECB should ramp up its buying of troubled euro zone debt to support Italy and prevent a "cataclysmic" collapse of the euro.
Earlier in the day, the Bank of Japan’s chief economist said that the country’s economy will see flat growth for the time being before resuming a moderate recovery later this year as the euro zone’s debt crisis and an overseas slowdown weigh on exports.
Elsewhere, the yen was lower against the euro with EUR/JPY advancing 0.19%, to hit 97.84.
Later in the day, the U.S. was to release official data on retail sales and initial jobless claims.