Forexpros – The U.S. dollar dipped against the yen on Monday, remaining in the pair’s recent tight range as demand for safe haven assets was boosted by fears that the U.S. economy is sliding back into recession and concerns over the ongoing sovereign debt crisis in the euro zone.
USD/JPY hit 76.69 during late Asian trade, the daily low; the pair subsequently consolidated at 76.80, dipping 0.02%.
The pair was likely to find support at 76.29, the low of August 11 and resistance at 77.01, the high of August 29.
The U.S. Labor Department said Friday that the U.S. economy added no new jobs in August for the first time in nearly a year. Economists had expected non-farm payrolls to rise by 74,000 last month. The jobless rate remained unchanged at 9.1%.
The dismal data added to expectations that the Federal Reserve will embark on a third round of monetary stimulus, to shore up U.S. growth.
Elsewhere, the euro remained under pressure after German Chancellor Angela Merkel’s ruling party were defeated in local elections on Sunday, amid dissatisfaction over her handling of the region’s sovereign debt crisis.
The yen was also higher against the euro, with EUR/JPY shedding 0.48% to hit 108.57.
On Sunday, Japan’s new Finance Minister Jun Azumi said government officials remained concerned over “persistent one-sided gains†in the yen and reiterated that Japan was prepared to take decisive action against speculative moves in the currency markets.
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