Forex Pros – The yen fell to a three-day low against the U.S. dollar on Tuesday, after data from the U.S., China and Japan bolstered confidence in the global economic recovery.
USD/JPY hit 82.23 during European morning trade, the pair’s highest since last Thursday; the pair subsequently consolidated at 82.15, gaining 0.46%.
The pair was likely to find support at 81.61, Monday’s low and resistance at 82.51, Thursday’s high.
Earlier in the day, official data showed that Chinese and Indian manufacturing expanded while Japanese payrolls gained, following a Commerce Department report on Monday showing that U.S. incomes rose more-than-expected in January.
Meanwhile, oil prices stabilized after spiking to a 29-month high last week after Saudi Arabia boosted crude oil production 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 advancing 0.63% to hit 113.61.
Later Tuesday, the Chairman of the Federal Reserve, Ben Bernanke, was to testify on the semi-annual monetary policy report before the Senate Banking Committee in Washington, while the U.S. Institute for Supply Management was to publish a report on manufacturing activity.
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