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Forex - USD/JPY rises in mid-day Asian trade

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Forexpros - The Japanese yen extended losses against the U.S. dollar in Asian trade Tuesday, as the U.S. Senate voted to approve a measure to raise the nation's debt ceiling, but weak economic numbers rekindled fears of continued slow U.S. growth.

In mid-day Asian trade USD/JPY hit 77.40, the pair's highest since July 31; the pair subsequently consolidated at 77.26, rising 0.14%.

The pair was likely to find support at 77.12, Monday's low, and resistance at 78.02, Monday's high.

Dealers welcomed an end to the Congressional debt debate impasse but remained pessimistic following the release of data suggesting stagnant growth for the U.S. economy.

The U.S. Bureau of Economic Analysis announced Tuesday its seasonally adjusted core Personal Consumption Spending ( PCE ) price index rose by 0.1% in June, below market expectations of a 0.2% gain for the month.

In a separate report, the Bureau of Economic Analysis said U.S. personal income rose by 0.1% in June, the smallest gain since last November, while personal spending unexpectedly dropped 0.2%, the first decline in two years.

Wall Street shares suffered on the news, as the Dow Jones Industrial Average sank 2.2% to 11,866.62, its worst one-day drop since June 1. The Nasdaq Composite Index surrendered 2.8% to 2,669.24 and the S&P 500 fell 2.6% to 1,254.05.

Meanwhile the yen moved higher against both the euro and the British poind with EUR/JPY down 0.05% to hit 109.56, and GBP/JPY lower by 0.02% to hit 125.65.

The U.S. Labor Department was scheduled to release monthly figures Wednesday on non-farm private employment.

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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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