Forexpros –
Forexpros – The U.S. dollar moved lower against the Japanese yen in Asian trade Tuesday, with buying incentive for the greenback curtailed by recent weak U.S. employment figures and the suspension of Wall Street trading for the Labor Day holiday.
In mid-day Asian trade USD/JPY hit 76.96, the pair’s highest since Monday; the pair subsequently consolidated at 76.82, dropping 0.09%.
The pair was likely to find support at 76.29, the low of August 11, and resistance at 77.24, last Thursday’s high.
The U.S. Labor Department reported late last week that non-farm payrolls remained flat in August, the weakest job reading in a year. Market expectations were for non-farm payrolls to increase by 74,000 in August, after a revised 85,000 gain in July.
Concerns in Japan over the European debt crisis translated into steep losses for financial issues in Tokyo trading Tuesday.
Those concerns were further exacerbated by election results over the weekend in Germany, where Chancellor Angela Merkel’s Christian Democratic Union was roundly defeated in her home state of Mecklenburg-Vorpommern.
Germany, as Europe’s largest economy, has played in key role in the formation of the rescue package for debt threatened euro-zone members.
Meanwhile, the yen moved higher against both the euro and the British pound with EUR/JPY down 0.27% to hit 108.08, and GBP/JPY falling 0.28% to hit 123.55.
Investor focus was expected to turn to the release of gross domestic product figures for the euro-zone, as well as the U.S. Institute of Supply Management’s non-manufacturing index due for release later Tuesday.
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