Forexpros – The U.S. dollar slipped lower against the yen on Tuesday, to trade close to a six-week low amid ongoing concerns over sovereign debt issues in the euro zone.
USD/JPY hit 76.75 during early European trade, the pair’s lowest since November 18; the pair subsequently consolidated at 76.83, edging down 0.08%.
The pair was likely to find support at 76.57, the low of November 18 and resistance at 77.14, the high of November 16.
The dollar remained supported after data on Sunday showed that Chinese manufacturing activity expanded in December after contracting the previous month.
Meanwhile, concerns over the euro zone’s financial woes remained in focus as investors eyed a series of key events this month, including German and French bond auctions later in the week.
On January 9, French President Nicolas Sarkozy and German Chancellor Angela Merkel are due to meet in order to discuss new rules to enforce budget discipline across the European Union.
Elsewhere, the yen pulled away from an 11-year high against the euro with EUR/JPY rising 0.35%, to hit 99.81.
Markets in Japan remained closed for the extended New Year’s holiday.
Later in the day, the U.S. Institute of Supply Management was to publish a report on manufacturing activity and the Federal Reserve was to publish the minutes of its December policy meeting.
Forexpros
