Investing.com – The U.S. dollar was higher against the yen on Wednesday, as risk appetite sharpened, dampening demand for the safe haven of Japan’s currency.
USD/JPY hit 84.26 during early European trade, the daily high; the pair subsequently consolidated at 84.07, gaining 0.60%.
The pair was likely to find support at 83.49, the days low and an eight-day low and resistance at 84.77, Tuesday’s high.
The yen has weakened broadly in recent weeks amid concerns over the economic impact of the March 11 triple disaster and on expectations that the Bank of Japan will lag other central banks in raising interest rates as the economy recovers.
Earlier in the day, the Japanese government cut its assessment of the economy for the first time in six months.
“Although the Japanese economy was picking up, it has shown weakness” since the earthquake, the Cabinet Office said. A power shortage that resulted from a crippled nuclear facility, delays in resolving supply chain disruptions and rising oil prices threaten to depress growth further, it said.
The yen was also down against the euro, with EUR/JPY surging 0.81% to hit 121.96.
Later in the day, the U.S. was to publish government data on retail sales, while the Federal Reserve was to publish its Beige Book.
USD/JPY hit 84.26 during early European trade, the daily high; the pair subsequently consolidated at 84.07, gaining 0.60%.
The pair was likely to find support at 83.49, the days low and an eight-day low and resistance at 84.77, Tuesday’s high.
The yen has weakened broadly in recent weeks amid concerns over the economic impact of the March 11 triple disaster and on expectations that the Bank of Japan will lag other central banks in raising interest rates as the economy recovers.
Earlier in the day, the Japanese government cut its assessment of the economy for the first time in six months.
“Although the Japanese economy was picking up, it has shown weakness” since the earthquake, the Cabinet Office said. A power shortage that resulted from a crippled nuclear facility, delays in resolving supply chain disruptions and rising oil prices threaten to depress growth further, it said.
The yen was also down against the euro, with EUR/JPY surging 0.81% to hit 121.96.
Later in the day, the U.S. was to publish government data on retail sales, while the Federal Reserve was to publish its Beige Book.