Investing.com – The yen was trading close to a six-month low against the U.S. dollar on Tuesday after Federal Reserve Chairman Ben Bernanke said inflation expectations need to be watched “extremely closely.”
USD/JPY hit 84.48 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 84.31, gaining 0.31%.
The pair was likely to find support at 83.11, last Friday’s low and resistance at 84.72, Friday’s high and a six-month high.
Speaking on Monday, Fed chair Bernanke said he expected an increase in commodity prices to create a “transitory” boost in U.S. inflation and the central bank would act if he’s proven incorrect.
“As long as inflation expectations remain stable and well anchored, which in my view remains the case, and as long as commodity-price increases eventually stabilize, then this will not be reflected in a standard increase in inflation,” Bernanke said.
The yen was also lower against the euro, with EUR/JPY easing up 0.11% to hit 119.67.
Later in the day, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.
USD/JPY hit 84.48 during European morning trade, the pair’s highest since Friday; the pair subsequently consolidated at 84.31, gaining 0.31%.
The pair was likely to find support at 83.11, last Friday’s low and resistance at 84.72, Friday’s high and a six-month high.
Speaking on Monday, Fed chair Bernanke said he expected an increase in commodity prices to create a “transitory” boost in U.S. inflation and the central bank would act if he’s proven incorrect.
“As long as inflation expectations remain stable and well anchored, which in my view remains the case, and as long as commodity-price increases eventually stabilize, then this will not be reflected in a standard increase in inflation,” Bernanke said.
The yen was also lower against the euro, with EUR/JPY easing up 0.11% to hit 119.67.
Later in the day, the U.S. was to publish data on service sector growth while the Federal Reserve was to publish the minutes of its most recent policy setting meeting.