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Forex - USD/JPY pares losses, hovers above 15-year low

Published 09/08/2010, 05:29 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar pared earlier losses against the yen on Wednesday, hovering above a 15-year low, as investors continued to shrug off intervention warnings from Japanese officials.
 
USD/JPY bounced back from a fresh 15-year low of 83.33 during European morning trade; the pair subsequently consolidated at 83.71, shedding 0.15%.

The pair was likely to find support at 82.50, the low of May 31, 1995, and resistance at 84.24, Tuesday’s high.

Earlier in the day, Bank of Japan Governor Masaaki Shirakawa voiced concern over the Japanese economy’s outlook and hinted at potential additional stimulus measures while in speaking at a parliamentary session.

Governor Shirakawa said that he was “concerned about downside risks. If the downside risks materialize and the economy worsens at a faster pace than we expect, we are ready to take additional measures".

Meanwhile, Japan’s Finance Minister Yoshihiko Noda told a parliamentary committee that the government was ready to act to curb the yen’s gains in the currency market if necessary, saying "We will take decisive steps, which of course include intervention, when it becomes necessary".

The yen was also up against the euro, with EUR/JPY shedding 0.28% to hit 106.02.

Later in the day, the U.S. Federal Reserve Bank is to release its Beige Book, a summary of the data the bank examines before setting the benchmark interest rate.

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