Forex - USD/JPY tumbles to fresh 15-year low after Kan re-elected

Published 09/14/2010, 11:10 AM
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EUR/JPY
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Investing.com – The U.S. dollar tumbled to a fresh 15-year low against the yen on Tuesday, after the incumbent prime ministers victory in a leadership contest made Japanese intervention in currency markets appear less likely.

USD/JPY hit 82.93 during European afternoon trade, the pair's lowest since May 31, 1995; the pair subsequently consolidated at 83.05, tumbling 0.76%.

The pair was likely to find short-term support at 82.00 and resistance at 84.35, Monday's high.

Earlier in the day, Prime Minister Naoto Kan defeated rival Ichiro Ozawa in a vote for leadership of the ruling party. In the run up to the election Ozawa had been a more vocal proponent of yen selling in order to arrest the yen's sharp gains and of increasing public spending to stimulate economic growth.

Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.07% to hit 107.92.

Earlier in the day, official data showed that retail sales in the U.S. rose more-than-expected in August.

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