Investing.com - The U.S. dollar remained lower against the yen on Wednesday, as concerns over fresh tensions in Ukraine continued to boosted safe-haven demand, although upbeat U.S. trade data lent support to the greenback.
USD/JPY hit 102.24 during U.S. morning trade, the pair's lowest since July 30; the pair subsequently consolidated at 102.35, shedding 0.23%.
The pair was likely to find support at 102.03, the low of July 30 and resistance at 102.73, the high of August 4.
Official data showed that the U.S. trade deficit narrowed unexpectedly to $41.54 billion in June from a deficit of $44.66 billion a month earlier. It was the smallest deficit in five months as exports inched up 0.1% and imports fell 1.2%.
The greenback had strengthened broadly after data on Tuesday showed that the U.S. service sector expanded at the fastest pace in more than three years in July, while U.S. factory orders rose 1.1% in June, above economists' forecasts of a 0.5% gain.
Risk sentiment was hit earlier, as a buildup of Russian armed forces along its border with Ukraine fuelled fresh concerns over geopolitical tensions in the region.
The yen was higher against the euro, with EUR/JPY declining 0.39% to 136.69.
The euro came under renewed selling pressure after official data showed that Italy unexpectedly slid back into a recession in the second quarter, as gross domestic product contracted by 0.2%. Economists had forecast growth of 0.2%.
The data came after a report earlier in the day showed that German factory orders unexpectedly in June, fuelling concerns that the recovery in the euro zone is faltering.
Investors were looking ahead to the outcome of Thursday’s European Central Bank meeting as concerns over the divergence in monetary policy between it and other major central banks weighed.