Forex Pros – The U.S. dollar rose to a three-day high against the yen on Wednesday, as a slight rise in U.S. Treasury yields and seasonal buying by Japanese investors supported the greenback.
USD/JPY hit 82.93 during early European trade, the pair’s highest since Friday; the pair subsequently consolidated at 82.80, rising 0.17%.
The pair was likely to find support at 82.20, Tuesday’s low and resistance at 83.07, Friday’s high.
Japanese investors tend to buy the dollar for bookkeeping purposes before the end of Japan’s fiscal year, which is at the end of March.
There was no significant market impact from a 7.3 magnitude earthquake that struck northeastern Japan late in the morning. Initial reports suggested little damage from the quake, which was centered off the coast.
Meanwhile, the yen was slightly higher against the euro, with EUR/JPY dipping 0.06% to hit 114.86.
Also Wednesday, government data showed that Japanese machinery orders rose the most in five months in January, rising 4.2%, outstripping expectations for a 2.7% gain.
ForexPros.com
