Forex - USD/JPY hits daily high after Japan approves stimulus

Published 11/16/2010, 04:11 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar was up against the yen on Tuesday, rising to a fresh daily high after Japan’s parliament approved legislation to fund a stimulus package to support the economic recovery.

USD/JPY hit 83.24 during early European trade, the daily high; the pair subsequently consolidated at 83.20, gaining 0.15%.

The pair was likely to find support at 82.39, Monday’s low and resistance at 83.80, the high of September 30.

Earlier Tuesday, the Diet passed a 4.4 trillion yen supplementary budget to fund Prime Mimister Naoto Kan’s plan to fight deflation and combat the stronger yen.

Elsewhere, official data showed that Japan’s tertiary industry activity declined significantly more-than-expected in September.

The Ministry of Economy, Trade and Industry said that its Tertiary Industry Activity Index fell 0.9% in September after rising by a revised 0.1% in August. The decline was well below expectations for a 0.4% drop in September.

Industries which saw declines included retailing, communications and real estate while financial services saw a slight increase.

The yen was also down against the euro, with EUR/JPY rising 0.25% to hit 113.15.

Later in the day, the U.S. was to release official data on producer price inflation and industrial production, as well as a report on the capacity utilization rate.

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