Forexpros – The U.S. dollar slipped to a daily low against the yen on Tuesday, as fears that the debt crisis in the euro zone is worsening and the downbeat outlook for U.S. growth supported demand for the safe haven yen.
USD/JPY hit 76.72 during late Asian trade, the daily low; the pair subsequently consolidated at 76.74, sliding 0.18%.
The pair was likely to find short-term support at 76.29, the low of August 11 and resistance at 77.23, the high of September 1.
Concerns over the euro zone debt crisis intensified on Monday, as uncertainty over the implementation of an Italian austerity package saw the cost of insuring Italian sovereign debt against default rise above that of Spain for the first time since December 2009.
Meanwhile, talks on releasing Greece’s next aid installment remained at a standstill after Athens failed to meet deficit reduction targets.
Risk appetite was further hit by fears that the U.S. is slipping back into a recession after data on Friday showed that the world’s largest economy failed to create any jobs in August.
The yen was also higher against the euro, with EUR/JPY slipping 0.13% to hit 107.85.
Later Tuesday, the Institute of Supply Management was to produce a report on U.S. service sector activity.
Forexpros
