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Forex - USD/JPY up on robust U.S. consumer data

Published 05/25/2012, 02:47 PM
Updated 05/25/2012, 02:48 PM
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Investing.com - The dollar rose against the yen on Friday on stronger-than-expected consumer sentiment figures out of the U.S.

In U.S. trading on Friday, USD/JPY hit 79.64, up 0.06%, up from a low of 79.50 and off a high of 79.82.

The pair sought to test support at 79.34, the low from May 24, and resistance at 80.06, the high on May 23.

In the U.S., the Thomson Reuters/University of Michigan's consumer sentiment index rose to 79.3 in May, topping forecasts for a 77.8 reading.
 
The number was the highest in more than four years and sent the dollar rising worldwide.

Consumer spending drives over 70% of total U.S. economic output, and surprising confidence data fuels demand for the dollar.

The yen, however, saw some support amid daily concerns that Greece's time in the eurozone may be coming to a close.

Like the dollar, the yen serves as a safe-haven currency amid times of uncertainty.

Greece is fast approaching June 17 elections, and sentiments are building that enough politicians opposed to austerity measures attached to bailout money will seize power.

Rejecting austerity measures such as spending cuts and tax hikes could result in the European Commission, the European Central Bank and the International Monetary Fund halting rescue funding, which could send Greece abandoning the euro.

The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.02% and trading at 124.69 and EUR/JPY down 0.07% and trading at 99.69.








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