Forex - USD/JPY lower amid U.S. fiscal concerns

Published 11/08/2012, 03:15 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 Thursday, as concerns over the fiscal cliff, automatic tax increases and spending cuts in the U.S., supported demand for safe-haven assets.

USD/JPY hit 79.78 during late Asian trade, the session low; the pair subsequently consolidated at 79.91, shedding 0.10%.

The pair was likely to find near-term support at 79.75, Wednesday’s low and a one-month low and resistance at 80.00, the session high.

The outlook for U.S. and global growth was clouded amid concerns over the fiscal cliff, USD500 billion of automatic tax hikes and spending cuts due to come into effect on January 1, unless lawmakers can reach an agreement.

Market sentiment found some support after the Greek parliament narrowly approved further austerity measures required to secure the next installment of bailout funds late Wednesday, but the measures look likely to exacerbate the country’s recession.

In Japan, official data showed that the current account posted a seasonally adjusted deficit of JPY142.0 billion in September as export demand weakened.

The yen was trading close to a one-month high against the euro, with EUR/JPY slipping 0.13% to 102.01.

Later Thursday, the U.S. was to publish official data on the trade balance as well as the weekly government report on initial jobless claims.


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