Forex – The yen rose against the U.S. dollar on Wednesday, ahead of U.S. Federal Reserve chairman Ben Bernanke's testimony before the Senate Banking Committee in Washington.
USD/JPY hit 87.01 during European morning trade, a daily low; the pair subsequently consolidated at 87.03, shedding 0.54%.
The pair was likely to find support at 86.26, the low of July 16 and a 7-month low and resistance at 88.40, the high of July 15.
The yens gains came on the back of speculation that Bernanke will indicate in his report on the economy that the Fed intends keep its benchmark interest rate on hold, amid signs the global economic recovery is slowing.
The yen was also up against the euro, with EUR/JPY shedding 0.41% to hit 112.22.
Earlier in the day, the Bank of Japan Deputy Governor, Hirohide Yamaguchi said that while the central bank was watching currency rate moves carefully the bank would not intervene to counter the strength of the yen.
His comments came as Japanese exporters experienced losses on the country's Nikkei index.
USD/JPY hit 87.01 during European morning trade, a daily low; the pair subsequently consolidated at 87.03, shedding 0.54%.
The pair was likely to find support at 86.26, the low of July 16 and a 7-month low and resistance at 88.40, the high of July 15.
The yens gains came on the back of speculation that Bernanke will indicate in his report on the economy that the Fed intends keep its benchmark interest rate on hold, amid signs the global economic recovery is slowing.
The yen was also up against the euro, with EUR/JPY shedding 0.41% to hit 112.22.
Earlier in the day, the Bank of Japan Deputy Governor, Hirohide Yamaguchi said that while the central bank was watching currency rate moves carefully the bank would not intervene to counter the strength of the yen.
His comments came as Japanese exporters experienced losses on the country's Nikkei index.