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Forex - USD/JPY hits 2-day low as higher oil prices dent sentiment

Published 03/07/2011, 03:32 AM
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Investing.com – The U.S. dollar fell to a two-day low against the yen on Monday, as continued political unrest in Libya drove crude oil prices higher and bolstered demand for safe haven assets.

USD/JPY hit 82.08 during early European morning trade, the pair’s lowest since Thursday; the pair subsequently consolidated at 82.09, shedding 0.25%.

The pair was likely to find support at 81.71, Thursday’s low and resistance at 82.51, Thursday’s high.

Earlier in the day, crude futures for delivery in April were trading at USD106.11 a barrel on the New York Mercantile Exchange, after peaking at USD106.41, while Brent oil surged above USD117.

Oils gains came after troops loyal to Libyan leader Muammar Gaddafi launched counter-offensives against rebel-held towns, increasing fears that Libya is moving closer to a civil war.

The yen was also up against the euro, with EUR/JPY shedding 0.28% to hit 114.79.

Meanwhile, Japan's Prime Minister Naoto Kan brushed off calls for his resignation, after Foreign Minister Seiji Maehara stepped down on Sunday.

Maehara’s resignation, after taking campaign contributions from a foreign resident, has dealt a blow to Prime Minister Kan as he seeks to win funding for the country’s budget.

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