USD/JPY dips as market preps for Yellen testimony

Published 02/10/2014, 02:05 PM
Updated 02/10/2014, 02:06 PM
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Investing.com - The dollar edged lower against the yen on Monday as investors digested Friday's soft U.S. jobs numbers while remaining in standby mode ahead of Federal Reserve Chair Janet Yellen's congressional testimony on Tuesday.

In U.S. trading, USD/JPY was down 0.16% and trading at 102.17, up from a session low of 102.00 and off a high of 102.65.

The pair was expected to test support at 100.75, Tuesday's low, and resistance at 102.94, the high from Jan. 31.

The U.S. Labor Department reported on Friday that the economy added 113,000 jobs in January, less than an expected 185,000 increase.

While soft, the numbers weren't seen as weak enough to prompt the Fed to seriously delay tapering its USD65 billion in monthly bond purchases, which weaken the dollar to spur recovery by suppressing long-term interest rates.

Still, uncertainty surrounding the pace at which the Fed will taper due to soft economic indicators weakened the dollar in a session void of major U.S. economic indicators.

Investors also remained on the sidelines ahead of Fed Chair Janet Yellen's congressional testimony on Tuesday, which many hope will carry clues on the direction of U.S. monetary policy.

Meanwhile in Japan, government data showed that the current account deficit expanded to JPY0.20 trillion in December, from JPY0.05 trillion the previous month. Analysts had expected the current account deficit to expand to JPY0.06 trillion in December.

The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.10% at 139.39, and GBP/JPY trading down 0.18% at 167.65.

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