* Euro support seen at 55-day moving average at $1.2918
* Dollar edges down vs yen but some see long-term uptrend
By Lisa Twaronite
TOKYO, Nov 28 (Reuters) - The euro moved away from the previous session’s one-month high against the dollar in early Asian trading Wednesday as investors’ relief about a new debt target for Greece turned to unease about the looming U.S. fiscal crisis.
The U.S. Congress pushed toward compromise on Tuesday on a deal to avert the “fiscal cliff” of tax increases and spending cuts due to take effect next year but an agreement still appeared elusive, despite growing pressure from business interests for action.
While international lenders agreed on a plan to cut Greek debt, which will allow Greece to secure more financial aid and avoid a chaotic default, market scepticism grew over a lack of details on how Greece will implement the reforms needed to meet the new targets.
“The muddle through approach in Europe may amplify the outcome of the U.S. fiscal cliff discussions,” strategists at Barclays wrote in a note to clients on Wednesday.
“If they go well, the relief on peripheral assets may have legs, including the euro. If it goes bad, even France may get questioned by an uncertain market, and we would expect the euro to suffer,” they said.
The euro had been in a rising trend against the dollar since last week, as investors’ hopes rose that a deal on Greece would be reached and that U.S. lawmakers would make progress on addressing the fiscal impasse. The single currency rose as high as $1.3010 on Tuesday on trading platform EBS, its highest level since late October.
The euro was down about 0.1 percent in Asia at $1.2938, with support cited at its 55-day moving average, now at $1.2918, and also at the 38.2 percent Fibonacci retracement of its recent rally at $1.2877.
The European unit also lost 0.1 percent to 106.20 yen , moving away from a seven-month high of 107.135 yen set on Monday.
The dollar edged down about 0.1 percent to 82.08 yen, moving away from a 7-1/2 month high of 82.84 yen hit last Thursday.
The yen lost about 4 percent over the past two weeks, and some market participants believe this heralds a longer-term trend as investors have begun pricing in a possible game-changing shift in monetary policy after Japan’s Dec. 16 election, as the likely winner favours aggressive easing.