Forexpros – The broadly weaker U.S. dollar slipped lower against the yen in holiday thinned trade on Monday, but remained rangebound as hopes of a deal to contain the euro zone debt crisis boosted demand for riskier assets.
USD/JPY hit 76.63 during late Asian trade, the daily low; the pair subsequently consolidated at 76.61, slipping 0.10%.
The pair was likely to find support at 76.14, the low of September 22 and resistance at 77.07, the high of October 5.
German Chancellor Angela Merkel and French President Nicolas Sarkozy said after talks on Sunday that they will present a “comprehensive” package of new measures to tackle the debt crisis in the euro zone.
The measures are believed to include plans to provide fresh capital to Europe’s banks and proposals to coordinate the national budget policies between euro zone member states.
Japanese financial markets and U.S. Treasuries trading were closed Monday for national holidays.
Meanwhile, the yen was sharply lower against the euro, with EUR/JPY surging 1.08% to hit 103.75.
Also Monday, troubled Franco-Belgian lender Dexia agreed to the nationalization of its Belgian banking division, following fears that it could go bankrupt.
Ratings agency Moody’s has warned that the burden of the bailout of the bank could lead to a ratings cut on Belgian sovereign debt.
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