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Forex - USD/JPY up on Spanish worries, Japanese data

Published 05/28/2012, 11:40 PM
Updated 05/28/2012, 11:44 PM
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Investing.com - The dollar was slightly firmer against the yen on Tuesday in wake of higher-than-expected unemployment data out of Japan as well as rising demand for greenbacks worldwide amid Spanish financial concerns.

In Asian trading on Tuesday, USD/JPY hit 79.48, up 0.02%, up from a low of 79.42 and off a high of 79.64.

Support for the unit was seen at 79.34, the low of May 28, and resistance seen at 79.82, the high of May 25.

Japan's unemployment rate crept up 4.6% in April from 4.5% in March, slightly worse than expected, as markets were expecting the rate to come in unchanged.

Year-on-year household spending rose 2.6% in April, slightly better than forecasts for a 2.4% gain, while retail sales rose 5.8% on year, worse than forecasts for a 6.3% gain.

Meanwhile global demand for dollars was on the rise earlier in the session thanks to growing financial fears in Spain.

The yield on the Spanish 10-year bond shot to 6.47% earlier, the highest this year.
 
Spain’s government is set to arrange a EUR19 billion recapitalization package for one of the country’s largest commercial lenders, Bankia, which fueled global demand for dollars in a risk-off session, as worries persisted that the Spanish government may need to rely on sovereign debt to shore up the financial institution.

Trading was choppy, as the yen also serves as a safe-haven currency amid growing European worries

The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.07% and trading at 124.55 and EUR/JPY down 0.09% and trading at 99.58.

Later Tuesday, the pair will trade on the U.S. Conference Board's consumer confidence index and Japanese manufacturing data.







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