Investing.com - The U.S. dollar remained moderately lower against the yen on Monday, despite the release of upbeat U.S. industrial production data, as high risk aversion continued to support demand for the safe-haven yen.
USD/JPY hit 117.79 during U.S. morning trade, the session low; the pair subsequently consolidated at 118.56, slipping 0.16%.
The pair was likely to find support at 117.43, the low of December 11 and resistance at 119.92, the high of December 10.
Official data showed that industrial production rose 1.3% in November, compared to expectations for a 0.7% gain, after an 0.1% uptick in October, whose figure was revised from a previously estimated 0.1% slip.
The data came after the Federal Reserve Bank of New York reported that its index of general business conditions came in at minus 3.6 this month, down from 10.16 in November. Analysts had expected the index to rise to 12.52.
Market sentiment remained under pressure amid concerns over the economic impact of the continuing rout in oil prices and its effect on energy companies. Data late last week showing further signs of a slowdown in China added to fears over the global economic outlook.
Investors also remained wary ahead of Wednesday’s upcoming Fed meeting, as ongoing speculation over the prospects for a U.S. rate hike next year fuelled expectations that the U.S. central bank could adjust its forward guidance.
The yen was also higher against the euro, with EUR/JPY down 0.38% to 147.40.
The single currency was lower against the dollar, with EUR/USD shedding 0.28% to 1.2427.
The euro’s gains were held in check amid ongoing worries over the stagnating euro zone economy and prospects for a political crisis in Greece after a surprise decision by the government to bring forward a parliamentary vote for president to this week.
The move raised the prospect of snap elections if Prime Minister Antonis Samaras’ candidate is not approved by parliament, which could see the anti-bailout Syriza party take power.
The U.S. dollar index, which measures the greenback against a basket of six major currencies, added 0.20% to 88.74.