Forex Pros - The U.S. dollar's recent decline against the yen stalled on Thursday ahead of the release of key U.S. economic data, after the pair hit 89.21 following gloomy comments by the Federal Reserve chief about the global recovery.
USD/JPY consolidated around 89.38 during European midday trade, shedding 0.85%, after earlier plummeting to a 2-week low at 89.21. The pair was likely to find support at 88.55, the low of Feb. 4, and resistance at 91.29, Tuesday's high.
The yen also surged against other major currencies on Thursday, hitting a 1-year high against the euro and an 11-month high against the pound.
The Japanese currency's ascent came amid a wave of risk aversion sparked by disappointing economic data from the United States and in the wake of Federal Reserve Chairman Ben Bernanke's comments to Congress on Wednesday.
Later on Thursday, Bernanke was also set to speak to Congress, after he told U.S. lawmakers on the previous day that the U.S. recovery was “nascent,” and spoke about persisting struggles in the housing and labor markets.
Investors, meanwhile, awaited the release of key U.S. data later in the day on initial jobless claims and durable goods orders.
