Japanese Yen Falls In Cautious Trade
02 December 2021 - 1:50PM
RTTF2
The Japanese yen slipped against its major counterparts in the
Asian session on Thursday, as positive economic data from the U.S.
and higher oil prices helped offset some of the fears about the
spread of the Omicron variant of coronavirus.
Oil prices climbed ahead of a meeting of the Organization of the
Petroleum Exporting Countries and its allies to discuss a planned
increase in output against the backdrop of the new variant that
triggered travel restrictions.
Fed Chair Jerome Powell reiterated that the central bank may
accelerate tapering of bond purchases in response to high inflation
that could last into mid-2022.
The Fed is committed to its price stability goal and would
deploy tools to support the economy and to prevent higher inflation
from becoming entrenched.
The World Health Organization said on Wednesday that the current
COVID-19 vaccines may offer protection against severe cases of new
omicron variant like the other variants.
Meanwhile, caution prevailed after U.S. authorities confirmed
the first case of the Omicron variant in an individual who traveled
from South Africa recently.
The yen weakened to 128.21 against the euro and 123.06 against
the franc, down from its early 3-day highs of 127.50 and 122.37,
respectively. The yen is likely to find support around 131.00
against the euro and 124.5 against the franc.
The yen eased from its prior 2-day high of 112.62 against the
greenback and a new 2-month high of 149.45 against the pound and
edged down to 113.13 and 150.44, respectively. If the yen drops
further, 115.00 and 152.00 are seen as its next support levels
against the greenback and the pound, respectively.
The yen dropped to 88.55 against the loonie, 77.18 against the
kiwi and 80.54 against the aussie, following its previous near a
2-month high of 87.82, fresh 2-month highs of 76.63 and 79.98,
respectively. The next possible support for the yen is seen around
90.00 against the loonie, 80.00 against the kiwi and 82.00 against
the aussie.
Looking ahead, Eurozone jobless rate for October is due in the
European session.
The U.S. weekly jobless claims for the week ended November 27
will be featured in the New York session.
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