Forex - USD/JPY rises to 6-day high in risk-off trade

Published 05/14/2012, 03:19 AM
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Investing.com - The U.S. dollar rose to a six-day high against the yen on Monday, as ongoing concerns over the outcome of Greece’s political turmoil and a potential Greek exit from the euro zone boosted safe haven demand.

USD/JPY hit 80.12 during early European trade, the pair’s highest since May 4; the pair subsequently consolidated at 80.02, rising 0.11%.

The pair was likely to find support at 79.59, the low of May 10 and resistance at 80.39, the high of May 4.

On Sunday, Alexis Tsipras the head of Greece’s largest anti-bailout party Syriza rejected an invitation from the country’s president to attend last-ditch cross party talks, aimed at forming a coalition government.

Parties have been unable to reach an agreement over whether Greece should continue to implement unpopular austerity measures demanded by the country’s international creditors in exchange for its EUR130 billion bailout agreement.

Adding to concerns, ratings agency Fitch warned Friday that it would place the sovereign ratings of all euro zone members on review pending possible downgrades, if Greece was to exit the euro zone as a result of its current crisis.

Elsewhere, the yen was higher against the euro with EUR/JPY falling 0.13%, to hit 103.12.

Later in the day, the euro zone was to release official data on industrial production, while Italy was to hold an auction of 10-year government bonds. In addition, European Union finance ministers were to hold talks in Brussels.


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