Forexpros – The U.S. dollar was down against the yen on Wednesday, as concerns over the impact of the financial crisis in the euro zone on the global economy supported safe haven demand.
USD/JPY hit 76.62 during late Asian trade, the daily low; the pair subsequently consolidated at 76.67, slipping 0.17%.
The pair was likely to find support at 76.10, the low of September 22 and a one-month low and resistance at 77.02, the high of September 29.
Concerns over the financial crisis in the euro zone intensified after ratings agency Moody’s lowered Italy’s rating three levels to A2 from Aa2, with a negative outlook.
Elsewhere, a report in the Financial Times said that European Union finance ministers are looking at a bank recapitalization plan after agreeing that additional measures are needed support European lenders.
On Tuesday, Federal Reserve Chairman Ben Bernanke said the financial crisis in the euro zone was weighing on the U.S. economy and reiterated that the central bank was ready to do more to support the U.S. economic recovery.
The remarks came as concerns over a default by Greece intensified after a decision on the country’s next tranche of aid was delayed until mid-November.
The yen was also higher against the euro, with EUR/JPY shedding 0.50% to hit 102.00.
On Tuesday, Japan’s Finance Minister Jun Azumi reiterated a warning against speculators pushing the yen too high, saying the recent moves by the euro against the yen were excessive.
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