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Forex - USD/JPY hits 2-day high as oil prices retreat

Published 03/08/2011, 03:23 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar advanced to a two day high against the yen on Tuesday, as oil prices retreated from two-and-a-half-year highs as talks to discuss increasing production got underway.

USD/JPY hit 82.53 during early European trade, the daily high; the pair subsequently consolidated at 82.48, gaining 0.30%.

The pair was likely to find support at 81.93, Monday’s low and resistance at 82.88, the high of February 23.

Earlier in the day, Kuwait's oil minister Sheikh Ahmad Abdullah al-Sabah said members of the Organization of the Petroleum Exporting Countries were in talks to discuss increasing production, in order to ease worries about disruptions to Middle Eastern supplies.

Crude oil prices surged on Monday, amid escalating clashes in Libya between forces loyal to leader Moamer Gaddafi and rebels seeking to end his four-decade rule.

The yen was also down against the euro, with EUR/JPY rising 0.15% to hit 115.06.

Also Tuesday, official data showed that the economy watchers' survey index for current conditions in Japan rose to a seven-month high of 48.4 in February from 44.3 in January, posting the first rise in two months, due largely to a recovery in weather and labor conditions.

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