Forexpros – The U.S. dollar dipped against the yen on Monday, as uncertainty over the outcome of Greece and Italy’s political turbulence supported safe haven demand.
USD/JPY hit 78.19 during late Asian trade, the daily high; the pair subsequently consolidated at 78.11, shedding 0.15%.
The pair was likely to find short term support at 77.88, the low of November 3 and resistance at 78.98, the high of November 1.
On Sunday, Greek Prime Minister George Papandreou announced that he would step down, paving the way for the formation of a new coalition government, which will oversee elections and ratify austerity measures to ensure the country receives its next tranche of bailout funds.
Meanwhile, Italian borrowing costs soared ahead of a parliamentary vote on public finances Tuesday, amid open dissent within Prime Minister Silvio Berlusconi’s government.
The dollar spiked to an almost three-month against the yen last week after Japan’s intervention to curb the strong appreciation of the nation’s currency.
The yen was higher against the euro with EUR/JPY declining 0.79%, to hit 107.04.
Later in the day, the euro zone was to release official data on retail sales, while Germany was to publish government data on industrial production.
Forexpros
