Forex - USD/JPY falls on fears global economy still cool
Published Mar 05, 2012 11:05PM ET
In Asian trading on Tuesday, USD/JPY hit 81.45, down 0.13%, up from a low of 81.34 and off a high of 81.58.
The pair sought to test support at 81.09, Friday's low, and resistance at 81.87, Friday's high.
China on Monday announced it set a 2012 gross domestic growth target of 7.5%, below previous 8% targets, which caught the market off guard.
The news sent investors selling stocks and running to the safe haven of the yen, which has dipped in value in recent sessions thanks to easing policies.
The Bank of Japan has said it would allocate JPY10 trillion to an asset-purchasing program and establish inflation goals as a move to weaken the currency as well as tweak inflation policies.
Such easing measures have worked in weakening the yen, whose recent strengthening trend has crimped business in Japan's key export sector.
However, the currency dipped to attractive levels for edgy buyers on Tuesday.
Meanwhile, tensions between the West and Iran continue to push up oil prices, which dampen economic outlooks.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY losing 0.19% to 129.15 and EUR/JPY down 0.27% at 107.50.
Later Tuesday, the eurozone is to publish revised data on fourth quarter GDP, while the U.S. will the U.S. Treasury will hold its 4-week bill auction.
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Written By: Investing.com
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