Investing.com - The dollar steadied against the yen on Wednesday, following losses in the previous session after discouraging U.S. consumer sentiment data, but concerns over the outlook for China continued to underpin safe haven demand for the yen.
USD/JPY edged up 0.05% to 102.28, after falling to lows of 101.99 on Tuesday.
The pair was likely to find support at 101.85 and resistance at 102.67, Monday’s high.
The Conference Board reported Tuesday that its U.S. consumer confidence index declined to 78.1 in February, from a downwardly revised 79.4 last month, amid concerns over the short-term outlook for business conditions, jobs, and earnings.
A recent series of disappointing U.S. economic indicators have sparked concerns that the recovery has lost momentum since the end of last year.
The yen continued to remain supported as concerns over the outlook for growth in China fuelled risk aversion.
China’s yuan fell sharply on Tuesday, adding to losses in recent weeks, amid speculation that the country’s central bank had intervened to add volatility to the currency ahead of possible economic reforms.
The euro edged higher against the yen, with EUR/JPY rising 0.10% to 140.65, up from Tuesday’s lows of 140.11.
The euro slipped against the yen and the dollar on Tuesday after Russia's deputy finance minister said Moscow was under no legal obligation to give Ukraine the remainder of a $15 billion bailout package it negotiated in December.
The euro was little changed against the dollar in rangebound trade, with EUR/USD dipping 0.01% to 1.3742.
