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Forex - Dollar rises against yen but gains could be short lived

Published 07/05/2010, 06:58 AM
EUR/USD
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USD/JPY
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Investing.com – The U.S. dollar was up against the yen on Monday, as markets in the U.S. were closed for a bank holiday but weak Chinese economic data released earlier in the day looked set to underline existing negative sentiment.

USD/JPY hit 88.0 during European morning trade; a daily high; the pair subsequently consolidated at 87.8, gaining 0.03%.

The pair was likely to find support at 86.97, the low of July 1 and a 19-month low, and resistance at 88.76, the high of June 30.

Earlier Monday, official data showed that Chinese auto sales grew at a slower pace in June while a services-industry index slid to a 15-month low. The data followed news last Friday that the U.S. economy shed 125,000 jobs in June and sparked fresh fears over a slowdown in global growth.

The dollar was also up against the euro, with EUR/USD shedding 0.27% to hit 1.2531.

Also Monday, data showed that the euro zone's services sector expanded in June but warned theat there were signs that growth may weaken in coming months, as new business growth declined to its slowest for four months.


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