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Forex - USD/JPY firms on U.S. data, Federal Reserve uncertainty

Published 07/30/2013, 02:20 PM
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Investing.com - The dollar rose against the yen on Tuesday after investors sought safety in the U.S. currency ahead of the Federal Reserve's decision on monetary policy on Wednesday, with investors eager for some indications on the fate of monetary stimulus measures.

In U.S. trading on Tuesday, USD/JPY was trading at 98.05 up 0.09%, up from a session low of 97.76 and off a high of 98.47.

The pair was likely to find resistance at 100.45, Wednesday's high, and support at 97.64, Monday's low.

Uncertainty kept investors parked in the dollar on Tuesday, despite data that showed the U.S. economy continues to improve albeit at a spotty pace.

Earlier Tuesday, the Standard & Poor's/Case-Shiller Composite 20-city house price index rose by an annualized rate of 12.2% in May from 12.1% the previous month, compared to expectations for an increase to 12.4%.

While the figure missed market expectations, the numbers were strong enough to boost hopes for a more robust and sustained U.S. economic recovery, which gave the greenback some support.

Elsewhere, the Conference Board research group said that its index of U.S. consumer confidence fell to 80.3 in July from 82.1 in June, whose figure was revised up from 81.4.

Analysts had expected consumer confidence to remain unchanged at 81.4 last month, which kept some expectations alive that dollar-weakening stimulus measures will stay in place.

Still, the dollar traded higher over the yen, as even though both currencies enjoy safe-haven appeal during times of uncertainty, the greenback edged higher as investors sold the yen for profits after recent sessions of gains.

The yen, meanwhile, was up against the pound and down against the euro, with GBP/JPY down 0.58% and trading at 149.39 and EUR/JPY trading up 0.05% at 129.99.

Currency markets will move on the Federal Reserve's decision on monetary policy as well as on U.S. gross domestic product data due out Wednesday.







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