Investing.com - The U.S. dollar was sharply lower against the yen in thin year-end trade on Thursday, as increased risk aversion due to concerns over the euro zone’s debt crisis and its effects on Japan’s economy supported demand for the safe haven yen.
USD/JPY hit 77.68 during early European trade, the daily low; the pair subsequently consolidated at 77.71, retreating 0.29%.
The pair was likely to find support at 77.48, the low of December 9 and resistance at 78.03, the high of December 28.
The yen found support as data showing Wednesday lower than-expected Japanese industrial production and retail sales in November added to concerns over the effects of the euro zone’s debt woes and the global slowdown on Japan’s economic recovery.
The Japanese government also reiterated its pledge to intervene in the foreign exchange market to curb the appreciation of the yen when considered necessary.
Meanwhile, markets were jittery ahead of Italy’s second bond auction this week, as the previous debt sale failed to reassure investors.
Italy’s Treasury was to sell EUR8.5 billion of long-term debt maturing between 2014 and 2022 later in the day.
Elsewhere, the yen was also higher against the euro with EUR/JPY shedding 0.48%, to trade at 100.37.
Later Thursday, the U.S. was to release a weekly government report on initial jobless claims, as well as industry data on pending home sales and business conditions in the Chicago area.
USD/JPY hit 77.68 during early European trade, the daily low; the pair subsequently consolidated at 77.71, retreating 0.29%.
The pair was likely to find support at 77.48, the low of December 9 and resistance at 78.03, the high of December 28.
The yen found support as data showing Wednesday lower than-expected Japanese industrial production and retail sales in November added to concerns over the effects of the euro zone’s debt woes and the global slowdown on Japan’s economic recovery.
The Japanese government also reiterated its pledge to intervene in the foreign exchange market to curb the appreciation of the yen when considered necessary.
Meanwhile, markets were jittery ahead of Italy’s second bond auction this week, as the previous debt sale failed to reassure investors.
Italy’s Treasury was to sell EUR8.5 billion of long-term debt maturing between 2014 and 2022 later in the day.
Elsewhere, the yen was also higher against the euro with EUR/JPY shedding 0.48%, to trade at 100.37.
Later Thursday, the U.S. was to release a weekly government report on initial jobless claims, as well as industry data on pending home sales and business conditions in the Chicago area.