Investing.com - The U.S. dollar rose marginally against the Japanese yen in Asian trade Tuesday, following overnight gains on Wall Street and promising developments on European debt resolution.
In mid-day Asian trade USD/JPY hit 78.10, the pair’s highest since Monday; the pair subsequently consolidated at 78.06, adding 0.02%.
The pair was likely to find support at 75.58, the low of October 31, and resistance at 79.53, the high of October 31.
Over the weekend, Greek Prime Minister George Papandreou agreed to resign, leaving the door open for the creation of a new government that could better secure international funds and avoid default on the country’s debt.
On Monday, Greece’s Finance Minister Evangelos Venizelos held talks with European Union Economic and Monetary Affairs Commissioner Olli Rehn to negotiate payment of Greece’s next tranche of financial aid.
European finance officials met in Brussels on plans to expand the European Financial Stability Facility, the rescue fund for debt-threatened euro-zone members.
Meanwhile, rumors continued to circulate that Italian Prime Minister Silvio Berlusconi would be the next European leader to step down, as 10-year Italian bonds surged to their highest level since the launch of the single-currency euro.
Berlusconi dismissed reports of his looming resignation despite heavy pressure from within his own political party ahead of a key parliamentary vote later Tuesday.
Wall Street dealers took a generally positive view of events in Europe, with the Dow Jones Industrial Average gaining 0.71% to 12,068.40, the Nasdaq Composite Index added 0.34% to 2,695.25, and the S&P 500 rose 0.63% to close at 1,261.12.
Elsewhere Monday, Japan’s Cabinet Office reported that its leading indicators index registered 91.6 in October, below market forecasts of a rise to 96.3 from 93.8 in September.
Meanwhile, the yen moved higher against both the euro and the British pound with
Japan’s Ministry of Finance was scheduled to release its latest figures on the nation’s current account balance later Tuesday.