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Forex - USD/JPY edges higher, gains limited

Published 08/27/2012, 03:13 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar edged higher against the yen on Monday, but gains were limited as markets were jittery ahead of euro zone data to be published later in the week, amid sustained concerns over the region’s sovereign debt crisis.

USD/JPY hit 78.84 during early European trade, the pair’s highest since August 22; the pair subsequently consolidated at 78.71, easing up 0.07%.

The pair was likely to find support at 78.43, the low of August 24 and resistance at 79.04, the high of August 15.

Investors remained cautious after German Chancellor Angela Merkel on Friday rejected Greece’s request to extend the timeframe given to implement its economic reform program.

Following talks with Greek Prime Minister Antonis Samaras, Merkel said it was up to Greece to show that it could implement the austerity measures agreed with its international creditors, but reiterated that the country should stay in the euro zone.

Market participants were looking ahead to Germany's Ifo business climate index later in the day, amid concerns over the economic impact of the debt crisis on the region’s largest economy.

Investors were also eyeing a speech by Federal Reserve Chairman Ben Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, for indications on whether the central bank will soon announce a new round of easing measures to boost growth.

The yen was steady against the euro with EUR/JPY inching down 0.05%, to hit 98.36.

Trade was expected to remain thin on Monday, with markets in the U.K. remaining closed for a bank holiday weekend.


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