Traders are likely to sell the Japanese yen at 82, a key level at which G-7 nations intervened in the currency markets in March, to weaken the yen.
“Eighty-two is an important level for USD JPY as it is the rate the yen reached after the Group of Seven nations jointly intervened in the foreign exchange market to artificially weaken the currency,” Euro Exchange Rate News reported, quoting Anthony Grech, exchange rate analyst with IG Index in London.
Earlier on Tuesday, the Japanese yen strengthened against its major counterparts, amid growing concerns over debt crisis in the eurozone and Standard & Poor’s downgrade of US debt outlook to negative on Monday. USD/JPY fell 0.22 percent to 82.48 during early European trading, as risk aversion boosted the demand for yen.
G-7 nations intervened for the first time in currency markets since 2000 in March to weaken the surge of yen, after a devastating earthquake in Japan led yen to reach all-time high of 76.53 against the US dollar on March 17.