Forex Pros – The U.S. dollar edged higher against the yen on Tuesday, as exports from quake-hit Japanese exporters have slowed down, fanning concerns over a narrowing of Japan’s trade surplus.
USD/JPY hit 81.78 during early European trade, the daily high; the pair subsequently consolidated at 81.69, easing up 0.02%.
The pair was likely to find support at 80.86, last Friday’s low and resistance at 82.04, the high of March 15.
Japanese exports have slumped after the massive earthquake and tsunami in northern Japan on March 11 caused production slowdowns as parts supplies dried up. Meanwhile, importers look likely to step-up buying of materials for reconstruction, which could result in a narrower Japanese trade surplus.
Japan’s current-account surplus reduces the country’s dependence on borrowing abroad and supports the yen.
The yen was also down against the euro, with EUR/JPY climbing 0.43% to hit 115.57.
Also Tuesday, Tokyo Electric Power Company, the operator of the crippled Fukushima nuclear power plant, said plutonium was found at low-risk levels in five places at the facility, as pressure mounted on Japan’s prime minister to widen the evacuation zone around the plant.
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