Forexpros – The U.S. dollar slipped against the yen on Wednesday, as concerns over the debt crisis in the euro zone rumbled on after Moody’s Investor Services downgraded Spain’s sovereign debt rating by two notches.
USD/JPY hit 76.66 during late Asian trade, the daily low; the pair subsequently consolidated at 76.72, sliding 0.12%.
The pair was likely to find support at 76.30, the low of October 12 and a two-week low and resistance at 77.25, the high of October 3.
Moody’s downgraded Spain’s sovereign debt rating by two notches late Tuesday and said it was maintaining a negative outlook on Spain’s rating to reflect the “downside risks from a potential further escalation of the euro area crisis.”
The announcement came one day after Moody’s placed France’s triple-A credit rating on review.
But the yen remained supported amid guarded hopes that the upcoming European Union summit would yield progress in dealing with the debt crisis in the euro zone, after German Chancellor Angela Merkel said the summit will mark an important step in solving the debt crisis.
Meanwhile, the yen was lower against the euro, with EUR/JPY rising 0.17% to hit 105.83.
Later in the day, the U.S. was to publish government report on building permits and housing starts as well as official data on consumer price inflation.
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