Forex - USD/JPY trims losses after Basel banking agreement

Published 09/13/2010, 04:37 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar trimmed losses against the yen on Monday, retreating from a daily low, as risk sentiment was boosted by the outcome of the Basel Committee on Banking Supervision meetings.

USD/JPY hit 84.07 during European afternoon trade, shedding 0.13%, after clawing back up from a daily low of 83.83.

The pair is likely to find support at 83.33, the low of September 8 and a 15-year low, and resistance at 85.21, the high of September 3.

On Sunday, the Basel Committee on Banking Supervision agreed on new banking regulations intended to prevent a repeat of the recent international credit crisis. 
 
Meanwhile, traders looked ahead to Tuesday’s leadership vote of the ruling Democratic Party of Japan between Prime Minister Naoto Kan and challenger Ichiro Ozawa.

Earlier in the day, Ozawa repeated that he “will decisively take all measures including market intervention to protect Japan's economy," should he be elected.

Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.88% to hit 107.66.

Later in the day, the U.S. was to release official data on its federal budget balance.

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