Investing.com - The dollar was lower against the yen for a second day on Wednesday after an official from the G7 expressed concerns over excessive moves in the value of Japan’s currency.
USD/JPY hit 92.83 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 93.21, sliding 0.26%.
The pair was likely to find support at 92.16, the low of February 8 and resistance at 94.39, Tuesday’s high and a two-and-a-half year high.
The yen initially weakened against the dollar and the euro on Tuesday after a statement by the G7 reaffirmed a commitment to market-determined exchange rates and said that fiscal and monetary policy won't target exchange rates.
However the yen turned sharply higher after a G7 official said the statement was misinterpreted and was intended to signal concern over excessive movement in value of the yen.
The statement came ahead of a meeting of finance ministers from the G20 group later in the week, which was likely to feature discussion on competitive currency devaluations.
Japanese Finance Minister Taro Aso said Tuesday that Japan would tell the G20 that it intends to maintain monetary and economic policies aimed at beating deflation.
Investors also remained cautious ahead of the outcome of the Bank of Japan’s policy meeting on Thursday although the bank was widely expected to hold off from announcing any changes to monetary policy before a new governor is appointed.
Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.23% to 125.44.
The euro zone was to release official data on industrial production later Wednesday, while the U.S. was to produce government data on retail sales.
USD/JPY hit 92.83 during late Asian trade, the pair’s lowest since Monday; the pair subsequently consolidated at 93.21, sliding 0.26%.
The pair was likely to find support at 92.16, the low of February 8 and resistance at 94.39, Tuesday’s high and a two-and-a-half year high.
The yen initially weakened against the dollar and the euro on Tuesday after a statement by the G7 reaffirmed a commitment to market-determined exchange rates and said that fiscal and monetary policy won't target exchange rates.
However the yen turned sharply higher after a G7 official said the statement was misinterpreted and was intended to signal concern over excessive movement in value of the yen.
The statement came ahead of a meeting of finance ministers from the G20 group later in the week, which was likely to feature discussion on competitive currency devaluations.
Japanese Finance Minister Taro Aso said Tuesday that Japan would tell the G20 that it intends to maintain monetary and economic policies aimed at beating deflation.
Investors also remained cautious ahead of the outcome of the Bank of Japan’s policy meeting on Thursday although the bank was widely expected to hold off from announcing any changes to monetary policy before a new governor is appointed.
Elsewhere, the yen was higher against the euro, with EUR/JPY down 0.23% to 125.44.
The euro zone was to release official data on industrial production later Wednesday, while the U.S. was to produce government data on retail sales.