Investing.com - The U.S. dollar inched higher against the yen on Wednesday, but gains were limited amid growing worries over the global economic outlook and lingering fears over the euro zone’s ongoing debt crisis.
USD/JPY hit 78.35 during European morning trade, the session high; the pair subsequently consolidated at 78.32, adding 0.09%.
The pair was likely to find support at 78.14, Tuesday’s low and resistance at 78.42, Tuesday’s high.
Market sentiment remained under pressure after the International Monetary Fund cut its 2012 global growth forecast to the slowest pace since the 2009 recession on Tuesday, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.
Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.
The yen came under modest selling pressure after IMF Deputy Managing Director Naoyuki Shinohara said Tuesday the Bank of Japan has room to ease policy further, adding to calls from Japanese politicians for more action by the central bank.
Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.06% to 100.77.
Later in the day, Italy was to auction EUR11 billion of short-term government bonds, while the Federal Reserve was to publish its Beige Book.
USD/JPY hit 78.35 during European morning trade, the session high; the pair subsequently consolidated at 78.32, adding 0.09%.
The pair was likely to find support at 78.14, Tuesday’s low and resistance at 78.42, Tuesday’s high.
Market sentiment remained under pressure after the International Monetary Fund cut its 2012 global growth forecast to the slowest pace since the 2009 recession on Tuesday, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.
Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.
The yen came under modest selling pressure after IMF Deputy Managing Director Naoyuki Shinohara said Tuesday the Bank of Japan has room to ease policy further, adding to calls from Japanese politicians for more action by the central bank.
Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.06% to 100.77.
Later in the day, Italy was to auction EUR11 billion of short-term government bonds, while the Federal Reserve was to publish its Beige Book.