Forexpros – The U.S. dollar was lower against the yen on Tuesday, as investors eyed the Federal Reserve’s rate decision later in the day amid concerns over mass euro zone downgrades.
USD/JPY hit 77.84 during early European trade, the daily low; the pair subsequently consolidated at 77.71, declining 0.28%.
The pair was likely to find support at 77.45, the low of November 28 and resistance at 78.09, the high of December 5.
Rating agencies warned on Monday that last week’s European Union summit did not go far enough in easing immediate concerns about the region’s debt woes.
Moody’s said it intended to review ratings of all EU member states in the first quarter of 2012, while Standard and Poor’s still threatened to downgrade the ratings of 15 euro zone nations.
Fitch Ratings said the summit had failed to provide a “comprehensive” solution to the debt crisis.
In Japan, official data showed that tertiary industry activity rose more-than-expected in October, ticking up 0.6% after a 0.7% decline the previous month.
Analysts had expected Japan’s tertiary industry activity to rise 0.5% in November.
Elsewhere, the yen was up against the euro with EUR/JPY retreating 0.13%, to trade at 102.64.
Later in the day, the U.S. was to publish official data on retail sales, while the Federal Reserve was to announce its federal funds rate.
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