USD/JPY on one-week highs

US dollar strengthened to reach its highest point against the Japanese yen in one week during Mondays thin trade, while situation with Syria still supported safe haven demand for the greenback.

USD/JPY rose to a session high at 99.37 at 7:41 GMT, the highest point since August 23rd, after which consolidation followed at 99.28, still advancing 1.11% for the day. Support for the pair was likely to be found at August 30th low, 97.88, while resistance was to be met at August 23rd high, 99.95.

Fears of a possible military intervention by the United States and its allies in Syria chilled to a certain extent, as US President Barack Obama said on August 31st that he will seek Congresss approval before embarking on a military campaign in Syria. However, the Secretary of State John Kerry said on Friday that the United States would punish Syria’s President Bashar al-Assad for the “brutal and flagrant” chemical weapons attack, which killed almost 1 500 people in the city of Damascus. Kerry also said in front of CNN on September 1st, that the United States had proof that poisonous sarin gas was used in the chemical attack on Syrian civilians near Damascus in August.

US dollar’s advance was limited, on the other hand, as on Friday official data showed that the index, gauging US consumer sentiment, decreased in August, pulling back from July’s six-year high. The final values of the University of Michigan’s consumer confidence index slid to 82.1 in August from a reading of 85.1 a month ago.

Meanwhile, in Japan, a government report showed that Capital Spending remained flat during the second quarter of the year, compared to the second quarter of 2012, following the 3.9% decline, registered during the first three months. Preliminary estimates pointed a drop by 2.1%.

Elsewhere, the yen was losing ground against the euro as well, with EUR/JPY cross up by 1.09% on a daily basis to trade at 131.19 at 8:24 GMT.