Forex Pros – The U.S. dollar edged higher against the yen on Wednesday, supported by cautiously optimistic remarks on the U.S. economic outlook by Federal Reserve Chairman Ben Bernanke but gains were capped as oil prices rebounded.
USD/JPY hit 82.11 during early European trade, the daily high; the pair subsequently consolidated at 81.93, easing up 0.08%.
The pair was likely to find support at 81.72, Tuesday’s low and short-term resistance at 82.22, Tuesday’s high.
On Tuesday, Fed Chair Bernanke told the U.S. Senate Banking Committee that while he saw increasing evidence the U.S. economic recovery had gained enough momentum to become self-supporting, employment growth remained too weak.
He also said the recent oil price rally, caused by political turmoil in the Middle East and North Africa, was unlikely to hurt the U.S. economy, unless it was sustained.
Earlier in the day, crude futures for delivery in April were trading at USD99.66 a barrel on the New York Mercantile Exchange, after peaking at USD100.57, amid concerns over ongoing violence in Libya and protests in Bahrain, Iran and Yemen.
The yen was also slightly lower against the euro, with EUR/JPY rising 0.09% to hit 112.87.
Later Wednesday, Ben Bernanke was to testify for a second day before the Senate Banking Committee, while the Fed was to publish its Beige Book. The U.S. was also to publish data on private sector payrolls compiled by payroll processing firm ADP.
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