Forexpros – The U.S. dollar inched higher against the yen on Wednesday, but the pair remained rangebound off the record low hit in August, as concerns over an intervention by Japan to weaken the yen supported the Japanese currency.
USD/JPY hit 76.73 during late Asian trade, the daily high; the pair subsequently consolidated at 76.65, inching up 0.02%.
The pair was likely to find short-term support at 76.33, the low of September 28 and resistance at 77.07, the high of October 5.
Risk sentiment was dented after the U.S. Senate rejected President Barack Obama’s plan to jump-start U.S. job creation, adding to concerns over the rate of growth in the world’s largest economy.
Meanwhile, Slovakia’s parliament rejected a plan to expand the scope of the euro zone’s bailout fund. Slovakia is the only euro zone member that has yet to approve a plan to enlarge the lending capacity of the European Financial Stability Facility and a re-vote was expected to be held later in the week.
But concerns over a default by Greece eased after officials from the European Union, International Monetary Fund and European Central Bank said that Greece was likely to receive its next tranche of financial aid early next month.
The yen was also fractionally lower against the euro, with EUR/JPY easing up 0.13% to hit 104.68.
Later in the day, European Commission President Jose Barroso was to present proposals on bank recapitalization to the European Parliament. The U.S. was to publish the minutes of the Federal Reserve’s most recent policy-setting meeting.
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