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Forex - USD/JPY falls on data-fueled dollar sales

Published 12/20/2011, 10:39 PM
Updated 12/20/2011, 10:42 PM
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Investing.com - The dollar weakened against the yen on Wednesday as data from both sides from the Pacific sent investors selling greenbacks and snapping up positions in the Japanese currency.

USD/JPY was trading at 77.82, down 0.09%, up from a session low of 77.78 and off from the high of 77.90.
 
The pair was likely to seek support at 77.72, Tuesday's low, and resistance at 78.05, Tuesday's high.

The dollar weakened against major currencies earlier during the day as better-than-expected German business confidence figures and demand at the Spanish government's bond auction fueled optimism worldwide, easing investors' attachment to the U.S. currency as a safe haven.

The U.S. government reported that housing starts in November rose 9.3%, surpassing forecasts and giving investors more reason to sell dollars and invest in riskier but more rewarding asset classes.

Meanwhile, Japan’s trade balance fell more than expected to a seasonally adjusted -0.54T last month from -0.46T in the preceding month.

The yen was down against the euro, with EUR/JPY up 0.15% at 102.05, and up against the pound, with GPB/JPY down 0.02% at 121.98.

Later Wednesday, Bank of Japan officials were tentatively set to speak on the status of the Japanese economy and interest rates while the Bank of England was to release the minutes of its most recent monetary policy meeting.

Canada will report on core retail sales figures while the U.S. National Association of Realtors will release existing home sales data.

New Zealand, meanwhile, will report on its latest gross domestic product figures.





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