Forexpros – The U.S. dollar rallied to an eight-day high against the yen on Wednesday, as markets eyed the outcome of prolonged debt talks in Greece with hopes the country will manage to avoid a default.
USD/JPY hit 77.15 during late Asian trade, the pair’s highest since January 27; the pair subsequently consolidated at 77.10, advancing 0.44%.
The pair was likely to find support at 76.51, the day’s low and resistance at 77.31, the high of January 19.
A Greek official said late Tuesday the government and international creditors were close to a final draft of an agreement on the terms required for a EUR130 billion rescue package.
After holding talks with the troika, comprising the European Commission, the European Central Bank and the International Monetary Fund, Prime Minister Lucas Papademos was set to meet with coalition leaders later in the day to get consensus approval.
Meanwhile, the dollar remained under pressure after Federal Reserve Chairman Ben Bernanke indicated that the central bank would keep borrowing costs close to zero for another two years even after data last week showing the U.S. unemployment unexpectedly fell to a three-year low.
In testimony to the Senate Budget Committee in Washington on Tuesday Bernanke said the decline in the jobless rate understated weakness in the labor market.
The yen was also lower against the euro with EUR/JPY adding 0.60%, to hit 102.40.
Later in the day, the U.S. was to publish a government report on crude oil stockpiles.
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