Forexpros – The U.S. dollar was almost unchanged against the yen on Wednesday, as trade remained thin with markets in Japan closed for a holiday, but safe haven demand remained supported amid concerns over the euro zone and after disappointing Chinese manufacturing data.
USD/JPY hit 77.07 during late Asian trade, the daily high; the pair subsequently consolidated at 77.00, inching up 0.04%.
The pair was likely to find support at 76.75, the low of November 21 and resistance at 77.26, the high of November 14.
Market sentiment was hit after a Belgian newspaper reported that Belgium and France were in fresh talks over an existing bailout plan for troubled lender Dexia, sparking concerns that France could have to play a larger role in the rescue.
The report fanned speculation that France’s triple A credit rating might be in danger.
Meanwhile, China’s November HSBC preliminary manufacturing purchasing managers’ index fell to a 32-month low of 48.0 in November, dropping below the 50-point level that denotes a contraction, adding to fears over a ‘hard landing’ in the world’s second largest economy.
The yen was higher against the euro, with EUR/JPY shedding 0.31% to hit 103.64.
Later in the day, the U.S. was to publish a string of economic data ahead of Thursday’s Thanksgiving holiday, including a government report on durable goods orders, the weekly report on initial jobless claims as well as data on crude oil stockpiles, inflation, personal income and personal spending.
Meanwhile, the University of Michigan was to release revised data on inflation expectations and consumer sentiment.
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