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Forex - USD/JPY higher for third day as U.S. economy strengthens

Published 01/05/2011, 04:40 AM
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Investing.com – The U.S. dollar was up against the yen for a third consecutive day on Wednesday as renewed hopes that the U.S. economic recovery was gathering momentum dampened demand fro the safe haven yen.

USD/JPY hit 82.21 during European morning trade, the daily high; the pair subsequently consolidated at 82.1, gaining 0.08%.

The pair was likely to find support at 81.6, Tuesday’s low and short-term resistance at 82.46, December 29.

On Tuesday, the minutes of the Federal Reserve’s December policy meeting acknowledged that the recent economic rebound should continue.

However, Fed policy makers said that improvements in the economy didn’t meet the threshold for scaling back their plans to purchase USD600 billion in bonds.

Also Tuesday, government data showed that orders to U.S. factories rose unexpectedly in November, climbing by a seasonally adjusted 0.7%, confounding forecasts for a 0.4% decline.

The yen was also down against the euro, with EUR/JPY shedding 0.27% to hit 108.88.

Later in the day, the U.S. was to publish data on ADP non-farm payrolls and service sector growth.

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