Forexpros – The U.S. dollar was sharply higher against the yen on Monday, as investor confidence strengthened after weekend elections in Greece gave pro-bailout party New Democracy a slim victory, easing concerns over a potential Greek exit from the euro zone.
USD/JPY hit 79.30 during early European trade, the daily high; the pair subsequently consolidated at 79.28, gaining 0.73%.
The pair was likely to find support at 78.60, the low of June 15 and resistance at 79.74, the high of June 13.
Market sentiment strengthened as political parties supporting Greece’s international bailout were to begin forging a government on Monday, after an election victory over radical leftists staved off the prospect of the debt-laden country leaving the euro zone.
Conservative New Democracy leader Antonis Samaras called for broad support after winning Sunday’s election over the radical Syriza party, which had threatened to cancel the aid deal in defiance of the country’s lenders.
But investors remained cautious, as concerns over the handling of Greece’s financial crisis persisted while all eyes turned to Germany for any possibility of concessions on the harsh budgetary restrictions imposed on Athens.
Commenting on Sunday’s vote, Japan’s vice Finance Minister Fumihiko Igarashi said he welcomed the outcome of the election in Greece but that this was only the first hurdle and Greece’s problems have not yet been solved.
He also urged European countries to pursue their efforts to manage the sovereign debt crisis.
Elsewhere, the yen was lower against the euro with EUR/JPY jumping 1.22%, to hit 100.73.
Later in the day, a two-day G-20 summit was set to begin in Mexico.