Forex - USD/JPY in tight range amid intervention concerns

Published 09/14/2011, 03:53 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar dipped against the yen on Wednesday, but the pair remained in a tight range as concerns over a possible intervention by Japan to weaken the yen left investors reluctant to push the currency higher.

USD/JPY hit 76.84 during late Asian trade, the daily low; the pair subsequently consolidated at 76.89, dipping 0.03%.

The pair was likely to find short-term support at 76.41, the low of August 31 and short-term resistance at 77.58, Monday’s high.

The yen remained supported as concerns over the debt crisis in the euro zone intensified after ratings agency Moody’s downgraded the long term debt rating of two of France’s largest lenders, citing their exposure to Greek debt.

Earlier in the day, Bank of Japan board member Ryuzo Miyao said the central bank will take action if necessary to protect the country’s economic recovery, adding to expectations that the BOJ may take further steps to lessen the impact of the strong yen.

The yen has seen an increase in safe haven inflows after last month’s intervention by the Swiss National Bank to halt the appreciation of the franc.

The yen also edged higher against the euro, with EUR/JPY slipping 0.10% to hit 105.13.

Later in the day, Greek Prime Minister George Papandreou was to hold a conference call with German Chancellor Angela Merkel and French President Nicolas Sarkozy later Wednesday, to discuss developments in Greece.

Meanwhile, the U.S. was to produce official data on producer price inflation and retail sales.

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