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Forex - USD/JPY pushes higher on Cyprus bailout news

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Investing.com - The dollar pushed higher against the yen on Monday as market sentiment strengthened after Cyprus secured an international bailout agreement, dampening the safe haven appeal of the yen.

USD/JPY hit 94.96 during late Asian trade, the session high; the pair subsequently consolidated at 94.71, gaining 0.24%.

The pair was likely to find support at 0.9418, Friday's low and resistance at 96.10, Thursday's high.

Early Monday, euro zone finance minister's rubber stamped a EUR10 billion international bailout for Cyprus that will see the closure of the country's second largest lender Laiki Bank and inflict heavy losses deposits of more than EUR100,000.

However, all bank deposits under EUR100,000 will be "fully guaranteed".

The deal ended a week of uncertainty over a possible exit from the euro zone after a previous agreement that included a levy on deposits in Cypriot banks was rejected by the country's parliament last Tuesday.

The dollar looked likely to remain supported close to recent three-and-a-half year highs against the yen as expectations for more aggressive easing steps by the Bank of Japan under new Governor Haruhiko Kuroda remained intact ahead of the bank's upcoming policy meeting next week.

The yen was lower against the euro, with EUR/JPY rising 0.30% to 123.10.

Investors were looking ahead to a speech by Federal Reserve Chairman Ben Bernanke later in the trading day.

Last week, the U.S. central bank announced that it will leave monetary policy unchanged in spite of recent signs that the U.S. recovery is gaining traction.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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