Investing.com – The U.S. dollar was steady against the yen on Tuesday, having pulled away from Monday’s three-month peak as investors remained cautious over the prospect of further action by Japan to weaken the yen.
USD/JPY hit 78.02 during late Asian trade, the daily low; the pair subsequently consolidated at 78.10, dipping 0.07%.
The pair was likely to find support at 77.70, the high of September 7 and resistance at 78.98, the days high.
Risk appetite was hit by uncertainty over how a package of measures to contain the debt crisis in the euro zone, agreed on at last Thursday’s European Union summit, could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well surging Italian borrowing costs also weighed.
Elsewhere, data showing that Chinese manufacturing activity dropped to its lowest level since February 2009 in October fuelled concerns over a slowdown in the world’s second-largest economy.
Earlier in the day, Japan’s Finance Minister Jan Azumi reiterated that he is ready to take appropriate action in currency markets to rein in the persistently strong yen.
Meanwhile, the yen was sharply higher against the euro, with EUR/JPY tumbling 1.23% to hit 106.99.
Later in the day, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.
USD/JPY hit 78.02 during late Asian trade, the daily low; the pair subsequently consolidated at 78.10, dipping 0.07%.
The pair was likely to find support at 77.70, the high of September 7 and resistance at 78.98, the days high.
Risk appetite was hit by uncertainty over how a package of measures to contain the debt crisis in the euro zone, agreed on at last Thursday’s European Union summit, could be implemented.
Reports that Greek Prime Minister George Papandreou has called a referendum on the new aid package as well surging Italian borrowing costs also weighed.
Elsewhere, data showing that Chinese manufacturing activity dropped to its lowest level since February 2009 in October fuelled concerns over a slowdown in the world’s second-largest economy.
Earlier in the day, Japan’s Finance Minister Jan Azumi reiterated that he is ready to take appropriate action in currency markets to rein in the persistently strong yen.
Meanwhile, the yen was sharply higher against the euro, with EUR/JPY tumbling 1.23% to hit 106.99.
Later in the day, the Institute of Supply Management was to produce a report on U.S. manufacturing activity.