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Forex - USD/JPY higher, eyes on Greece

Published 02/28/2012, 03:30 AM
Updated 02/28/2012, 03:30 AM
Investing.com - The U.S. dollar was higher against the yen on Tuesday, after Germany’s parliament approved a second bailout for Greece and as investors looked ahead to a second liquidity injection from the European Central Bank.

USD/JPY hit 80.72 during early European trade, the daily high; the pair subsequently consolidated at 80.76, rising 0.19%.

The pair was likely to find support at 80.72, the day’s low and resistance at 81.20, the high of February 24.

Germany’s parliament approved a EUR130 bailout package for Greece on Monday as German Chancellor Angela Merkel warned that pushing Athens out of the euro would risk “incalculable” damage.

Markets shrugged off a decision by ratings agency Standard & Poor's to cut Greece’s long term credit rating to 'selective default'.

Meanwhile, markets were looking ahead to a long term refinancing operation by the ECB after a similar operation in December eased pressure on peripheral euro zone bond markets.

In Japan, official data showed that retail sales rose unexpectedly in January, climbing 1.9% after a 2.5% rise the previous month.
Analysts had expected retail sales to fall 0.2%.

The yen has been under pressure in recent weeks following a surprise easing by the Bank of Japan and a fall in the country’s current account surplus.

Elsewhere, the yen was also lower against the euro with EUR/JPY climbing 0.61%, to hit 108.65.

Later in the day, the U.S. was to produce official data on durable goods orders, as well as industry data on house price inflation and consumer confidence.


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