FRX: USD/JPY approaches 15-year low as risk appetite wanes
Forex Pros – The U.S. dollar fell to a 3-day low against the yen on Tuesday, re-approaching a 15-year low, as concerns over a slowdown in global economic growth were exacerbated by weak U.S. manufacturing data.
USD/JPY hit 85.12 during European morning trade, the pair's lowest since August 12; the pair subsequently consolidated at 85.27, shedding 0.07%.
The pair was likely to find support at 84.73, the low of August 11 and a 15-year low and resistance at 86.88, the high of August 2.
Earlier in the day, Japan's economics minister Satoshi Arai said the yen's rise may not be stopped by verbal intervention but that the government must monitor the rise for now.
He added that there is a view that the yen's gains may now be in their final stage.
Meanwhile, the yen was down against the euro, with EUR/JPY gaining 0.24% to hit 109.71.
Later in the day, the U.S. was to produce data on producer price inflation. The country was also to produce data on building permits and housing starts.
