Forex - USD/JPY hits 3-month low, Japan warnings eyed

Published 01/31/2012, 03:41 AM
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Investing.com - The broadly weaker U.S. dollar extended its recent decline against the yen on Tuesday, falling to a three-month low, prompting renewed warnings from Japan over the appreciation of its currency.

USD/JPY hit 76.18 during late Asian trade, the pair’s lowest since October 31, 2011, when Japan intervened in the market; the pair subsequently consolidated at 76.26, slipping 0.10%.

The pair was likely to find support at 75.98, the low of October 24 and resistance at 76.40, the session high.

The dollar weakened against all of its major counterparts as risk appetite was boosted by hopes that a Greek debt restructuring deal is imminent, after Greek Prime Minister Lucas Papademos said "significant progress” had been made in talks with the country’s private creditors.

The greenback has been weaker against the yen since the Federal Reserve’s decision last week to push back a likely interest rate hike until mid-2014.

Earlier in the day, Japanese Finance Minister Jun Azumi reiterated a warning that he will take "decisive steps" if speculators push the yen up too sharply.

"If there is excessive volatility or really speculative movement, I will be vigilant against it, and I will take decisive steps if necessary," he said.

The yen was lower against the euro, with EUR/JPY adding 0.18% to hit 100.52.

Later in the day, the U.S. was to release industry data on house price inflation, as well as a report on manufacturing activity in the Chicago region. The country is also to publish a report on consumer confidence.


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