Investing.com - The dollar softened against the yen on Tuesday as investors bought the Japanese currency amid bottom fishing, ending a sell-off stemming from talk the Bank of Japan will roll out fresh monetary easing measures soon.
In Asian trading on Tuesday, USD/JPY was trading at 79.88, down 0.08%, up from a session low of 79.84 and off a high of 79.99.
The pair was likely to find support at 79.22, Monday's low, and resistance at 80.01, Monday's high.
Japan posted a JPY558.6 billion trade deficit in September, with exports falling 10.3% from the same month last year, the biggest drop since May 2011, two months after Japan’s earthquake disaster.
The numbers sparked talk the Bank of Japan will take fresh steps to stimulate the economy, including fresh monetary easing measures later this month at its next monetary policy meeting, which weakened the yen before bottom fishers brought it back up.
The dollar, meanwhile, traded lower on optimism Spain will seek a bailout.
Spanish Prime Minister Mariano Rajoy's center-right Popular Party increased its majority presence in the prime minister's home region of Galicia, which investors saw as a sign of support for economic policies needed to request a bailout.
Last week, Rajoy said his government felt it was under no pressure to seek a bailout, which pushed the euro down and fueled a wait-and-see mode among many investors.
With voters apparently supportive of Rajoy's austerity policies, investors went long on the euro on sentiments the government may be ready to make asking for a financial lifeline official, which sent the greenback falling globally, including against the safe-haven yen.
Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.12% and trading at 127.89 and EUR/JPY trading down 0.12% at 104.27.
In Asian trading on Tuesday, USD/JPY was trading at 79.88, down 0.08%, up from a session low of 79.84 and off a high of 79.99.
The pair was likely to find support at 79.22, Monday's low, and resistance at 80.01, Monday's high.
Japan posted a JPY558.6 billion trade deficit in September, with exports falling 10.3% from the same month last year, the biggest drop since May 2011, two months after Japan’s earthquake disaster.
The numbers sparked talk the Bank of Japan will take fresh steps to stimulate the economy, including fresh monetary easing measures later this month at its next monetary policy meeting, which weakened the yen before bottom fishers brought it back up.
The dollar, meanwhile, traded lower on optimism Spain will seek a bailout.
Spanish Prime Minister Mariano Rajoy's center-right Popular Party increased its majority presence in the prime minister's home region of Galicia, which investors saw as a sign of support for economic policies needed to request a bailout.
Last week, Rajoy said his government felt it was under no pressure to seek a bailout, which pushed the euro down and fueled a wait-and-see mode among many investors.
With voters apparently supportive of Rajoy's austerity policies, investors went long on the euro on sentiments the government may be ready to make asking for a financial lifeline official, which sent the greenback falling globally, including against the safe-haven yen.
Requesting financial assistance would allow Spain to tap the European Central Bank's bond-buying program, which would lower yields in Spanish government debt auctions and ease credit conditions in the country.
The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.12% and trading at 127.89 and EUR/JPY trading down 0.12% at 104.27.