Forex - USD/JPY lower, Greece talks in focus

Published 01/18/2012, 03:20 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar was lower against the yen on Wednesday, as markets eyed the resumption of Greece’s bailout talks and a string of government debt auctions in the euro zone.

USD/JPY hit 76.66 during late Asian trade, the daily low; the pair subsequently consolidated at 76.69, shedding 0.18%.

The pair was likely to find support at 76.54, Tuesday’s low and resistance at 76.90, the high of January 10.

Greece’s government was due to resume talks with its bond holders to discuss a voluntary write-down on Greece’s sovereign debt, after talks broke down on Friday, amid disagreements over how much money investors will lose by swapping their bonds.

Greece needs to secure an agreement on restructuring its debt in order to access new bailout funds and avert a default when an EUR14.4 billion bond redemption comes due on March 20.

Meanwhile, Portugal was preparing to sell up to EUR2.5 billion of treasury bills later Wednesday in its biggest debt auction since last year's bailout.

Germany was also set to raise around EUR4 billion euros in the bond market, followed by Spain and France on Thursday.

In Japan, Finance Minister Jun Azumi warned against the appreciation of the yen, signaling his readiness to step into the market to counter excess speculation, although he said Japan could not intervene in the same way Switzerland has.

Elsewhere, the yen was moderately higher against the euro with EUR/JPY easing up 0.03%, to hit 97.89.

Later in the day, the U.S. was to release official data on producer price inflation and industrial production.


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