Forex - USD/JPY hovers near 15-year low as intervention fears ease

Published 10/18/2010, 04:28 AM
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EUR/JPY
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Investing.com – The U.S. dollar was down against the yen on Monday, re-approaching a 15-year low, amid expectations that Japan would hold off on intervening in the currency market ahead of G20 meeting later in the week.

USD/JPY hit 81.13 during European morning trade, that pair’s lowest since last Friday; the pair subsequently consolidated at 81.24, shedding 0.28%.

The pair was likely to find support at 80.87, last Friday’s low and a 15-year low and resistance at 82.55, the high of October 8.

On Sunday, Japanese economy minister Banri Kaieda said that the government plans to establish a Cabinet Office study group to examine how to increase the amount of trade conducted in yen so as to minimize the impact of currency fluctuations.

His remarks prompted speculation that Japan is moving towards accepting a stronger yen.

The yen was also up against the euro, with EUR/JPY plunging 1.19% to hit 112.54.

Earlier in the day, official data showed that Japan's tertiary industry index, which measures spending in the services sector fell less-than-expected in August.

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