Forexpros – The U.S. dollar edged lower against the yen on Thursday, as a poor German bond auction sparked fresh concerns of debt contagion in the euro zone, supporting demand for safer assets.
USD/JPY hit 77.02 during European morning trade, the daily low; the pair subsequently consolidated at 77.15, shedding 0.20%.
The pair was likely to find support at 76.75, the low of November 21 and resistance at 77.57, Wednesday’s high.
Risk sentiment weakened on Wednesday after the least successful German bond sale since the launch of the single currency.
Germany failed to reach its maximum sales target of EUR6 billion, auctioning just EUR3.64 billion of 10-year government bonds, sparking concerns that the country may also be affected by the euro zone’s debt crisis.
The safe haven yen also found support as markets eyed a meeting between German, French and Italian leaders on Thursday, to discuss ways to tackle the region’s financial woes.
Earlier Thursday, ratings agency Standard & Poor said that Japanese Prime Minister Yoshihiko Noda’s administration hasn’t made progress in tackling the public debt burden, indicating that it may be preparing to lower the nation’s sovereign rating.
The yen was down against the euro with EUR/JPY edging up 0.01%, to hit 103.16.
In the U.S., markets were closed for the Thanksgiving holiday.
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