Forexpros – The U.S. dollar was steady against the yen on Tuesday, as markets were jittery ahead of talks between leaders of the Group of Seven nations later in the day, while expectations for further easing measures in Japan continued to pressure the yen.
USD/JPY hit 78.47 during early European trade, the pair’s highest since June 1; the pair subsequently consolidated at 78.28, inching down 0.07%.
The pair was likely to find support at 77.98, Monday’s low and resistance at 78.95, the high of February 16.
Market sentiment found support ahead of a teleconference of finance ministers from the G7 industrialized nations later in the day, to discuss the situation in the euro zone.
Investor confidence also strengthened amid expectations for more monetary easing measures by the European Central Bank at its policy meeting on Wednesday, to help stabilize markets.
But investors remained cautious amid ongoing worries over the lack of consensus among euro zone leaders on how to rescue Spain’s troubled banking sector.
Meanwhile, the yen remained under pressure after the governor of the Bank of Japan said on Monday that the central bank was closely monitoring the impact of the currency’s recent gains on the country’s largely export driven economy.
The comments came after the BoJ conducted a rate check on Friday, indicating that it is still prepared to intervene in currency markets to halt the yen’s gains.
The yen was higher against the euro with EUR/JPY falling 0.26%, to hit 97.67.
Later in the day, the U.S. Institute for Supply Management was to release a report on non-manufacturing activity.
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