Forexpros – The U.S. dollar was almost unchanged against the yen on Tuesday, after rising to a one-month high as investors remained cautious ahead of a meeting of euro zone finance ministers later in the day.
USD/JPY hit 78.28 during late Asian trade, the pair’s highest since November 2; the pair subsequently consolidated 77.93, inching down 0.04%.
The pair was likely to find support at 77.45, the low of November 28 and resistance at 78.40, the high of November 2.
Euro zone finance ministers were to meet later on Tuesday to approve detailed arrangements for scaling up the European Financial Stability Facility. They were also expected to release Greece’s next tranche of financial aid.
Meanwhile, Germany and France were still discussing proposals for a fiscal union due to be presented before the next European Union summit on December 9.
The greenback also came under pressure after ratings agency Fitch cut the credit outlook for the United States to negative, saying there was “considerable uncertainty surrounding the economy’s potential output.”
Elsewhere, Japan’s finance minister pledged to achieve “more appropriate” yen levels, signaling that sharp rises in the currency will trigger additional monetary stimulus as slowing global growth clouds the outlook for the export-dependent economy.
Elsewhere, the yen was almost unchanged against the euro with EUR/JPY easing up 0.06%, to trade at 103.93.
Later in the day, the U.S. was to release industry data on house price inflation as well as a report on consumer confidence.
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