Investing.com – The U.S. dollar trimmed gains against the yen on Monday, pulling back from the three-month high hit after Japan stepped into the foreign exchange market to curb the yen’s strong gains.
USD/JPY pulled away from 79.53, the pair’s highest since August 4, to hit 77.86 during European morning trade, still up 2.68% on the day.
The pair was likely to find support at 77.08, the high of October 20 and resistance at 79.52, the day’s high and a three-month high.
Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.
Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early Asian trade.
Earlier Monday, Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
Japanese officials have warned repeatedly that they may act to curtail the appreciation of the yen, which is threatening Japan’s largely export driven economy.
The yen also trimmed losses against the euro, with EUR/JPY up 1.52% to trade at 108.91, pulling back from an earlier high of 111.55.
Later Monday, the U.S. was to release data on manufacturing activity in the Chicago area.
USD/JPY pulled away from 79.53, the pair’s highest since August 4, to hit 77.86 during European morning trade, still up 2.68% on the day.
The pair was likely to find support at 77.08, the high of October 20 and resistance at 79.52, the day’s high and a three-month high.
Japan’s Vice Finance Minister Fumihiko Igarashi said that the intervention was not targeting specific currency levels and added that it was too early to assess the impact of the action, which may not yet have ended.
Japanese officials launched an intervention to curb the appreciation of the yen after the dollar fell to a record low of JPY75.56 in early Asian trade.
Earlier Monday, Finance Minister Jun Azumi said Tokyo had acted on its own and would keep intervening until it was satisfied with the results. Azumi said he ordered the intervention because “speculative moves” in the currency failed to reflect Japan’s economic fundamentals.
Japanese officials have warned repeatedly that they may act to curtail the appreciation of the yen, which is threatening Japan’s largely export driven economy.
The yen also trimmed losses against the euro, with EUR/JPY up 1.52% to trade at 108.91, pulling back from an earlier high of 111.55.
Later Monday, the U.S. was to release data on manufacturing activity in the Chicago area.