Forex - USD/JPY rebounds from 3-week low on Bernanke comments

Published 12/06/2010, 03:46 AM
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Investing.com – The U.S. dollar was up against the yen on Monday, rebounding from a 3-week low after Federal Reserve Chairman Ben Bernanke said that the U.S. economy was not likely to fall back into a recession.

USD/JPY hit 82.99 during early European trade, the daily high; the pair subsequently consolidated at 82.84, gaining 0.35%

The pair was likely to find support at 82.51, last Friday’s low and a 3-week low and resistance at 83.88, Friday’s high.

In an interview with CBS's "60 Minutes" aired Sunday, Bernanke said, “It doesn't seem likely that we'll have a double-dip recession.”

Bernanke said a renewed recession was not likely because sectors of the economy such as housing could not become much more depressed. He also said it could take four to five years before the U.S. returned to a more normal jobless rate.

Bernanke also said purchases of Treasuries beyond the USD600 billion announced last month were “certainly possible.”
 
Meanwhile, the yen was up against the euro, with EUR/JPY shedding 0.37% to hit 110.30.

Also Sunday, Japan's Finance Minister, Yoshihiko Noda, pledged "unwavering resolve" to limit public expenditures and borrowing in the next fiscal year, in order to rein in the country’s ballooning national debt.

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