Investing.com - The U.S. dollar pulled back from a six-month high against the yen on Monday, but the yen remained under pressure after data showed that Japan posted a record trade deficit in January.
USD/JPY hit 79.36 during late Asian trade, the daily low; the pair subsequently consolidated at 79.50, edging down 0.07%.
The pair was likely to find support at 78.78, the low of February 17 and resistance at 80.23, the high of August 4.
Government data showed earlier that Japan’s trade deficit widened by JPY0.61 trillion to JPY1.48 trillion in January from a deficit of JPY0.87 trillion the previous month.
Analysts had expected Japan’s trade deficit to widen by JPY0.83 trillion in January.
But demand for the safe haven yen remained supported ahead of a meeting of euro zone finance ministers later in the day to discuss signing off on a much needed EUR130 billion bailout for Greece.
Meanwhile, China’s central bank cut the amount of cash banks must hold in their reserves on Saturday, boosting lending capacity in an effort to spur the world's second-biggest economy.
The yen fell to a three-month low against the euro before paring losses with EUR/JPY rising 0.32%, to hit 104.88.
Markets in the U.S. remained closed for the Presidents Day holiday.
USD/JPY hit 79.36 during late Asian trade, the daily low; the pair subsequently consolidated at 79.50, edging down 0.07%.
The pair was likely to find support at 78.78, the low of February 17 and resistance at 80.23, the high of August 4.
Government data showed earlier that Japan’s trade deficit widened by JPY0.61 trillion to JPY1.48 trillion in January from a deficit of JPY0.87 trillion the previous month.
Analysts had expected Japan’s trade deficit to widen by JPY0.83 trillion in January.
But demand for the safe haven yen remained supported ahead of a meeting of euro zone finance ministers later in the day to discuss signing off on a much needed EUR130 billion bailout for Greece.
Meanwhile, China’s central bank cut the amount of cash banks must hold in their reserves on Saturday, boosting lending capacity in an effort to spur the world's second-biggest economy.
The yen fell to a three-month low against the euro before paring losses with EUR/JPY rising 0.32%, to hit 104.88.
Markets in the U.S. remained closed for the Presidents Day holiday.