BZ:Forex - USD/JPY hits daily low as Greece fears spur flight to safety
Forex Pros – The U.S. dollar dropped to a daily low against the yen on Thursday, as fears that Greece is moving closer to a default and concerns over the U.S. economic recovery boosted demand for traditional safe haven currencies.
USD/JPY hit 80.49 during late Asian trade, the daily low; the pair subsequently consolidated at 80.63, shedding 0.40%.
The pair was likely to find support at 79.69, the low of June 8 and a five-week low and resistance at 81.05, Wednesday’s high and a two-week high.
Earlier in the day, European Central Bank Governing Council member Nout Wellink said that the European bailout fund should be doubled if private investors are to contribute to additional refinancing aid for Greece.
Meanwhile, as protests against austerity measures became increasingly violent in Athens, Greek Prime Minister George Papandreou announced he planned to shuffle the government, but said he wouldn't step down.
Elsewhere, Wednesday’s disappointing U.S. data on manufacturing activity in the New York region and industrial production added to concerns over the U.S. economic outlook.
The yen was also sharply higher against the euro, with EUR/JPY tumbling 0.72% to hit 113.95.
Later in the day, the U.S. was to publish a weekly report on initial jobless claims, as well as data on building permits, housing starts and manufacturing activity.
