Forex Pros – The U.S. dollar edged cautiously higher against the yen on Monday, with risk appetite staging a modest recovery as oil prices stabilized after spiking to a two-day high during the Asian session.
USD/JPY hit 81.79 during early European trade, the daily high; the pair subsequently consolidated at 81.78, easing up 0.12%.
The pair was likely to find support at 81.34, the low of February 2 and resistance at 82.05, Friday’s high.
Crude futures for delivery in April traded at USD99.03 a barrel on the New York Mercantile Exchange, after peaking at USD99.96 earlier in the day. Crudes gains came as worsening turmoil in Libya sparked fresh concern about disruptions to oil production.
The dollar has been hurt by the recent spike in oil prices amid fears over the inflationary impact on the U.S. economy. However, Saudi Arabia has boosted crude production to 9 million barrels a day to make up for supplies lost as a result of the political turmoil in Libya.
The yen was also lower against the euro, with EUR/JPY rising 0.15% to hit 112.51.
Later in the day, the U.S. was to publish industry data on pending home sales as well as a report on manufacturing activity in the in the Chicago area. The U.S. was also to release official data on personal consumption expenditure and consumer price inflation.
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