Investing.com – The U.S. dollar dipped against the yen on Thursday, but the pair remained rangebound, following Japan’s intervention on Monday, to curb the appreciation of the persistently strong yen.
USD/JPY hit 78.00 during late Asian trade, the session low; the pair subsequently consolidated at 78.02, dipping 0.02%.
The pair was likely to find support at 77.85, the high of September 9 and resistance at 78.40, Wednesday’s high.
Market sentiment continued to be dominated by ongoing uncertainty over Greece’s planned referendum on its bailout deal.
On Wednesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy told Greece it will not receive any more financial aid until it decides it wants to remain within the euro zone and warned that Greece will surrender all European aid if it votes against the bailout package agreed upon last week.
Also Wednesday, the Federal Reserve said “economic growth strengthened somewhat in the third quarter,” but also warned that “significant downside risks” remain to the outlook.
The central bank reiterated its pledge to keep interest rates near zero through at least mid-2013 as long as unemployment remains high and the inflation outlook remains “subdued.”
The yen was also higher against the euro, with EUR/JPY shedding 0.29% to hit 106.93.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.
USD/JPY hit 78.00 during late Asian trade, the session low; the pair subsequently consolidated at 78.02, dipping 0.02%.
The pair was likely to find support at 77.85, the high of September 9 and resistance at 78.40, Wednesday’s high.
Market sentiment continued to be dominated by ongoing uncertainty over Greece’s planned referendum on its bailout deal.
On Wednesday, German Chancellor Angela Merkel and French President Nicolas Sarkozy told Greece it will not receive any more financial aid until it decides it wants to remain within the euro zone and warned that Greece will surrender all European aid if it votes against the bailout package agreed upon last week.
Also Wednesday, the Federal Reserve said “economic growth strengthened somewhat in the third quarter,” but also warned that “significant downside risks” remain to the outlook.
The central bank reiterated its pledge to keep interest rates near zero through at least mid-2013 as long as unemployment remains high and the inflation outlook remains “subdued.”
The yen was also higher against the euro, with EUR/JPY shedding 0.29% to hit 106.93.
Later in the day, the European Central Bank was to hold its first policy setting meeting chaired by new head, Mario Draghi. Meanwhile, the U.S. was to produce its weekly report on initial jobless claims as well as a report on service sector activity from the Institute of Supply Management.