Forex Pros – The yen dipped slightly lower against the U.S. dollar on Monday, after Friday’s intervention by the Group of Seven nations to weaken it, while markets in Japan remained closed for a holiday, sapping liquidity.
USD/JPY hit 81.03 during late Asian trade, the daily high; the pair subsequently consolidated at 81.01, easing up 0.55%.
The pair was likely to find support at 79.06, Friday’s low and resistance at 81.98, the high of the same day.
The yen’s losses were limited amid increased safe haven demand after coalition forces launched military strikes against Libya over the weekend in an attempt to remove loyalist support for leader Moammar Gadhafi.
However, markets remained wary of further intervention by the Japanese Ministry of Finance and major central banks around the world.
The yen was also lower against the euro, with EUR/JPY rising 0.42% to hit 114.74.
Also Monday, the operator of the stricken Fukushima nuclear power plant, Tokyo Electric Power Co. said some reactors had been reconnected to the power grid, which could allow for the use of on-site water pumps soon.
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