Forexpros – The U.S. dollar slipped to a seven-day low against the yen on Wednesday, as concerns over a fresh intervention by Japan waned while uncertainty over the euro zone debt crisis supported safe have demand.
USD/JPY hit 77.54 during late Asian trade, the pair’s lowest since October 31; the pair subsequently consolidated at 77.60, shedding 0.16%.
The pair was likely to find support at 77.13, the low of September 8 and resistance at 78.18, the high of November 7.
Risk sentiment was hit amid uncertainty over whether Italy’s new government will be able to implement austerity measures, after Prime Minister Silvio Berlusconi said he would step down after parliament approves the budget for 2012 next week.
Berlusconi announced his resignation after a budget vote on Tuesday resulted in his loss of the parliamentary majority.
Meanwhile, Greek officials were still working on forming a new coalition government as the country scrambles to obtain emergency funds to avoid a potential default.
Meanwhile, the yen was up against the euro with EUR/JPY falling 0.48%, to hit 106.99.
Also Wednesday, government data showed that China’s annualized rate of consumer price inflation came in broadly in line with expectations in October, slowing to 5.5%, after a 6.1% the previous month, easing fears over monetary tightening by Beijing.
Forexpros
