Forexpros – The yen dipped against the U.S. dollar on Monday, as safe haven demand remained supported amid concerns over the ongoing debt crisis in the euro zone and speculation that U.S. politicians have failed to agree on deficit reduction measures.
USD/JPY hit 76.77 during late Asian trade, the daily low; the pair subsequently consolidated at 76.80, slipping 0.12%.
The pair was likely to find short-term support at 76.57, Friday’s low and resistance at 77.02, Friday’s high.
In Spain, the center-right opposition People’s Party took a majority in Parliament after elections on Sunday and was expected to push through drastic austerity measures to try shore up the country’s economy and regain the country’s triple A credit rating.
But investors remained uncertain over the ability of policymakers to bring down the borrowing costs of many euro zone governments from current euro-era highs.
Meanwhile, a U.S. congressional “super committee” was expected to formally announce on Monday the failure of its three-month-long effort to draft a USD1.2 trillion deficit reduction plan.
The yen was also higher against the euro, with EUR/JPY shedding 0.56% to hit 103.41.
Also Monday, official data showed that Japanese exports fell in October, down for the first time in three months, as the persistently strong yen hit demand.
Exports fell 3.7% last month from a year earlier, while imports were up 17.9% year-on-year, bringing the trade balance to a deficit of JPY273.8 billion, the first deficit in two months.
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