Forex – USD/JPY edges higher but gains seen limited

0 – The U.S. dollar edged higher against the yen on Friday, but gains were expected to remain limited as renewed concerns over tensions in Ukraine and the Middle East supported demand for the safe-haven yen.

USD/JPY hit 101.41 during late Asian trade, the session high; the pair subsequently consolidated at 101.35, adding 0.19%.

The pair was likely to find support at 101.07, the low of July 10 and resistance at 101.62, the high of July 14.

Market sentiment weakened after a Malaysian Airlines passenger jet crashed in eastern Ukraine overnight. All 298 people on board were killed, sharply raising the stakes in a conflict between Kiev and pro-Moscow rebels in which Russia and the West back opposing sides.

The crash came a day after the U.S. and the European Union announced a fresh round of sanctions against Russia, following the annexation of Crimea in April and ongoing tensions in the rest of Ukraine. The U.S. package was the largest round of penalties so far.

Markets were also jittery after Israel announced late Thursday the start of a ground campaign in Gaza after 10 days of aerial and naval bombardments failed to stop Palestinian rocket attacks.

In Japan, the minutes of the central bank’s June meeting earlier showed that members agreed that the country’s economic recovery will remain on track and that consumer inflation will slow only temporarily.

The yen was lower against the euro, with EUR/JPY edging up 0.18% to 137.08.

Later in the day, the U.S. was to release preliminary data from the University of Michigan on consumer sentiment.

Source By Breaking News Website | BreakingNews.WS