Investing.com - The dollar fell against the yen on Thursday as investors sold the greenback in wake of weaker-than-expected housing data out of the U.S. and went long on yen positions amid increasing uncertainty on the European front.
In Asian trading on Thursday, USD/JPY hit 78.81, down 0.33%, up from a low of 78.79 and off a high of 79.13.
Support for the unit was seen at 78.79, the earlier low, and resistance seen at 79.56, the high of May 30.
Both the yen and the dollar have acted as safe-haven currencies amid recent European storminess, but the yen became the venue of choice on Thursday thanks to soft U.S. housing data.
Earlier in the U.S., the National Association of Realtors reported that pending home sales dropped 5.5% in April, well beyond expectations for a 0.1% decline.
The indicator published days before the May jobs report, and investors sold the dollar should unemployment figures spark more talk of Fed intervention after Friday's unemployment figures release.
Talk of monetary easing tends to send a currency weakening.
Meanwhile in Europe, Spain appeared set to recapitalize the Bankia financial institution with EUR19 billion via debt financing, which has currency markets concerned, especially since the regional government of Catalonia has asked Madrid for help refinancing its debts.
Yields in Spanish debt auctions have spiked in recent sessions and remain elevated, while borrowing costs in Italian auctions were up as well.
Meanwhile in Greece, new polls show the leftwing Syriza political party is gaining ground ahead of June 17 elections.
Syriza politicians oppose austerity measures attached to bailout funding, and a strong showing in the upcoming elections could lead to a coalition government rejecting austerity, which could potentially open the door to a Greek exit from the eurozone.
The combined news out of Europe sent investors in search of safe harbor, the yen namely.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.31% and trading at 122.07 and EUR/JPY down 0.25% and trading at 97.55.
Later Thursday in the U.S., the ADP National Employment Report will be released, shedding light on private-sector unemployment rates in the U.S. and serve as a precursor to Friday's official May jobs report.
U.S. gross domestic product data will publish, as will weekly initial jobless claims.
Japan will release data on housing starts.
In Asian trading on Thursday, USD/JPY hit 78.81, down 0.33%, up from a low of 78.79 and off a high of 79.13.
Support for the unit was seen at 78.79, the earlier low, and resistance seen at 79.56, the high of May 30.
Both the yen and the dollar have acted as safe-haven currencies amid recent European storminess, but the yen became the venue of choice on Thursday thanks to soft U.S. housing data.
Earlier in the U.S., the National Association of Realtors reported that pending home sales dropped 5.5% in April, well beyond expectations for a 0.1% decline.
The indicator published days before the May jobs report, and investors sold the dollar should unemployment figures spark more talk of Fed intervention after Friday's unemployment figures release.
Talk of monetary easing tends to send a currency weakening.
Meanwhile in Europe, Spain appeared set to recapitalize the Bankia financial institution with EUR19 billion via debt financing, which has currency markets concerned, especially since the regional government of Catalonia has asked Madrid for help refinancing its debts.
Yields in Spanish debt auctions have spiked in recent sessions and remain elevated, while borrowing costs in Italian auctions were up as well.
Meanwhile in Greece, new polls show the leftwing Syriza political party is gaining ground ahead of June 17 elections.
Syriza politicians oppose austerity measures attached to bailout funding, and a strong showing in the upcoming elections could lead to a coalition government rejecting austerity, which could potentially open the door to a Greek exit from the eurozone.
The combined news out of Europe sent investors in search of safe harbor, the yen namely.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.31% and trading at 122.07 and EUR/JPY down 0.25% and trading at 97.55.
Later Thursday in the U.S., the ADP National Employment Report will be released, shedding light on private-sector unemployment rates in the U.S. and serve as a precursor to Friday's official May jobs report.
U.S. gross domestic product data will publish, as will weekly initial jobless claims.
Japan will release data on housing starts.