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Forex - USD/JPY hits daily low as yen strength hurts Japan

Published 11/10/2010, 03:57 AM
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Investing.com – The U.S. dollar was down against the yen on Wednesday, easing down to hit a daily low after Japanese data showed that the strong yen is eroding business confidence.

USD/JPY hit 81.55 during European morning trade, a daily low; the pair subsequently consolidated at 81.64, shedding 0.04%.

The pair was likely to find support at 80.53, Tuesday’s low and resistance at 82.55, the high of October 8.

Earlier in the day, official data showed that consumer confidence in Japan fell for the fourth consecutive month in October.

In a report, the Cabinet Office said Japan's Consumer Confidence Survey index stood at 40.9 in October, down from 41.2 in September.

Concerns about job security and wage growth eased slightly in the October survey, although business sentiment in general has been hit by the appreciation of the yen, which hurts exporter profits.

The October index was the lowest since March, when the index was at 40.9.

Meanwhile, the yen was down against the euro, with EUR/JPY rising 0.27% to hit 112.80.

Later in the day, the U.S. was to release its weekly report on initial jobless claims. The data was being released one day earlier than usual due to a U.S. public holiday.

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