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Forex - USD/JPY eases, remains supported close to two-month high

Published 02/16/2011, 03:28 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar eased off a two-month high against the yen on Wednesday, but remained well supported on the view that the economic recovery in the U.S. is gathering momentum.

USD/JPY hit 83.62 during early European trade, the daily low; the pair subsequently consolidated at 83.69, slipping 0.08%.

The pair was likely to find support at 83.19, Tuesday’s low and short-term resistance at 83.91, Tuesday’s high and a two-month high.

Markets largely shrugged off Tuesday’s data showing that U.S. retail sales rose by 0.3% in January, only half of what economists had expected, after major snowstorms across much of the country kept shoppers at home.

The recent string of upbeat economic data has fuelled gains in U.S. Treasury yields, helping push the dollar higher against the yen.

Meanwhile, the yen was down against the euro, with EUR/JPY climbing 0.43% to hit 113.47.

Later in the day, the U.S. was to publish official data on producer price inflation, as well as reports on building permits, housing starts and industrial production.

In addition, the Federal Reserve was to publish the minutes of its most recent monetary policy committee meeting.

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