Forex - USD/JPY holds steady as intervention threat weighs
Investing.com
Published Aug 16, 2011 06:17AM ET
USD/JPY hit 76.73 during European morning trade, the daily low; the pair subsequently consolidated at 76.80, easing down 0.04%.
The pair was likely to find support at 76.29, the low of August 11 and short-term resistance at 77.22, the high of August 11.
Mounting fears over global growth prospects weighed on risk-sensitive currencies and boosted demand for traditional safe haven assets, such as the yen, Swiss franc and gold.
However, traders were wary to pile in to the yen, amid concerns Japanese officials will step in to the currency market to stem gains in the yen.
On Monday, Japanese Finance Minister Yoshihiko Noda sharpened his verbal warnings to markets, saying that he will continue to “closely watch the markets and take bold action if it becomes necessary.”
Noda also warned that the yen's strength posed as a downside risk to the Japanese economic recovery.
Japan intervened to curb the yen’s gains for the first time since March on August 4. In addition, the BOJ announced additional monetary easing to further bolster growth, pledging to buy more assets such as stocks and bonds.
Elsewhere, the yen was also up against the euro, with EUR/JPY shedding 0.45% to hit 110.46.
The single currency came under pressure following the release of disappointing data on economic growth in Germany and the wider euro zone.
Later in the day, the U.S. was to produce official data on building permits and housing starts, as well as reports on import prices, the capacity utilization rate and industrial production.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.