Forexpros – The U.S. dollar was higher against the yen on Monday, trading close to a five-week high, as hopes for a comprehensive plan to contain the debt crisis in the euro zone dampened demand for traditional safe haven assets.
USD/JPY hit 77.45 during late Asian trade, the daily high; the pair subsequently consolidated at 77.43, gaining 0.28%.
The pair was likely to find support at 76.81, Friday’s low and short-term resistance at 77.70, the high of September 7.
Market sentiment was boosted after European financial ministers pledged to their G-20 counterparts over the weekend that they would take decisive action to tackle the euro zone’s debt woes.
The planned proposals include measures to restructure Greek debt, recapitalize European banks and bolster the region’s bailout fund, the European Financial Stability Facility.
European leaders may complete the rescue plan at a summit on October 23, in time to present to a meeting of G-20 leaders early next month.
In Japan, the government downgraded its outlook for the economy for the first time in six months earlier, amid concerns over the impact of the persistently strong yen on the nation’s exporters.
In its monthly report for October, the Cabinet Office said “the Japanese economy is still picking up although the pace has decelerated, while difficulties continue to prevail.”
The yen was also lower against the euro, with EUR/JPY rising 0.36% to hit 107.56.
Later in the day, the U.S. was to publish official data on industrial production, as well as a report on manufacturing activity in New York state.
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