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Forex - USD/JPY dips as euro debt fears sour risk appetite

Published 05/25/2011, 03:37 AM
Updated 05/25/2011, 03:37 AM

Investing.com – The U.S. dollar slid to a daily low against the yen on Wednesday, as concerns over the euro zone’s sovereign debt crisis boosted demand for traditional safe haven assets.

USD/JPY hit 81.80 during early European trade, the daily low; the pair subsequently consolidated at 81.91, dipping 0.04%.

The pair was likely to find support at 80.93, the low of May 18 and resistance at 82.23, the high of May 19.

The yen shrugged off data showing that Japan's exports dropped by 12.5% in April, from a year earlier, after the earthquake and tsunami in March disrupted factory production. The large decline in exports pulled the country into the first trade deficit for the month of April in 31 years.

Following the data, Bank of Japan Governor Masaaki Shirakawa said the bank was examining ways to expand lending programs to support reconstruction efforts after the March disaster.

The yen was also higher against the euro, with EUR/JPY shedding 0.51% to hit 114.95.

Later in the day, the U.S. was to publish official data on durable goods orders as well as a government report on crude oil stockpiles.

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