Forex - USD/JPY lower amid Greece, U.S. concerns

Published 11/13/2012, 03:17 AM
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Investing.com - The U.S. dollar was lower against the yen on Tuesday, as worries over a delayed bailout payment for Greece and ongoing concerns over U.S. fiscal policy supported safe haven demand.

USD/JPY hit 79.21 during late Asian trade, the pair’s lowest since Friday; the pair subsequently consolidated at 79.24, shedding 0.31%.

The pair was likely to find support at 79.06, Friday’s low and a three-week low and resistance at 79.63, the session high.

Concerns over Greece mounted after officials from the International Monetary Fund and Europe failed to reach an agreement on how best to reduce Greece’s debt to manageable levels following talks on Monday.

A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.

Meanwhile, investors were looking ahead to the ZEW report on German economic sentiment later in the session, amid fears that the bloc’s largest economy has been hit by the ongoing debt crisis.

Safe haven demand continued to be underpinned by concerns over the U.S. fiscal cliff, automatic tax hikes and spending cuts due to come into effect on January 1, which could threaten U.S. and global growth.

The yen was higher against the euro, with EUR/JPY down 0.56% to 100.46.

Later Tuesday, the U.S. was to release official data on the federal budget balance.



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