FRX: Dollar trims losses versus yen, rising from 3-day low
Forex Pros – The U.S. dollar rose against the yen on Monday, trimming its earlier sharp losses on speculation that incoming Japanese prime minister, Naoto Kan, may favor a weaker yen.
USD/JPY hit 90.90 during European early afternoon trade, gaining 0.02%, after rising from 90.97, a 3-day low.
The pair was likely to find support around 88.96, the low of May 20, and resistance around 92.88, Friday’s high.
Earlier in the day, media outlets reported that Kan said on January 7, his first day as finance minister, that he wanted the yen to fall “a bit more” and pledged to monitor its level. He is due to announce a new strategy for growth and tighter fiscal policy later this month.
The yen was also down against the euro, meanwhile, with EUR/JPY shedding 0.12% to hit 109.81.
Later Monday, the Fed was due to release a report on U.S. consumer credit, an important signal of consumer confidence.
The chairman of the Federal Reserve, Ben Bernanke, was also due to speak at an event in Washington D.C. Traders were likely to scrutinize his comments for clues to future shifts in monetary policy.
