Forex Pros – The U.S. dollar fell to a two-day low against the yen on Thursday, after the U.S. Federal Reserve indicated that it remained concerned about high unemployment and amid concerns over escalating tensions in the Middle East.
USD/JPY hit 83.48 during early European trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 83.53, shedding 0.16%.
The pair was likely to find support at 83.09, Monday’s low and resistance at 83.97, Wednesday’s high and a two-month high.
The minutes of the Federal Reserve’s January policy meeting showed that the bank raised its forecast for 2011 economic growth to between 3.4% and 3.9%.
But the central bank said it remained concerned about high unemployment and the depressed construction industry and policymakers indicated that they intended to see the USD 600 billion bond purchasing program, known as QE2, through to completion.
Elsewhere, on Wednesday Israel’s foreign minister said two Iranian warships planned to sail through the Suez Canal en route to Syria, calling the move a “provocation”.
The news sparked renewed fears that the regime change in Egypt could make the entire region unstable as anti-government clashes continued in many countries.
The yen was also up against the euro, with EUR/JPY shedding 0.26% to hit 113.23.
Later in the day, the U.S. was to publish official data on consumer price inflation and initial jobless claims.
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