Investing.com - The dollar traded higher against the yen on Friday despite a slew of Japanese economic indicators that beat expectations.
Hawkish comments from a Federal Reserve governor and rising U.S. consumer sentiment data bolstered the dollar's appeal by supporting expectations for an end to ultra-loose monetary policies later this year.
In U.S. trading on Friday, USD/JPY was trading at 99.25, up 0.91%, up from a session low of 98.35 and off a high of 99.45.
The pair was likely to find resistance at 99.45, the earlier high, and support at 98.35, the earlier low.
The Thomson Reuters/University of Michigan consumer sentiment index rose to 84.1 for a final reading in June, up from a 82.7 reading the previous month and also above expectations for a 82.8 reading.
The upbeat numbers came in wake of a report that revealed that the Chicago purchasing managers' index fell to 51.6 this month from 58.7 in May, exceeding expectations for a decline to 56.0.
Any reading over 50 signifies expansion, which left investors at ease to seek out dollar positions.
Elsewhere in the U.S., Federal Reserve Governor Jeremy Stein suggested earlier Friday that asset purchases may begin to taper in September provided the economy improves, which further boosted the dollar.
Better-than-expected U.S. economic indicators often send the dollar rising by fanning already growing expectations for the Federal Reserve to taper stimulus programs in the coming months.
Stimulus programs such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their dismantling sends the dollar rising.
The yen, meanwhile, traded lower against its U.S. counterpart despite bullish data at home.
Japan's manufacturing purchasing managers' index rose to 52.3 in June from 51.5 in May, the index's fastest expansion in almost two years.
A separate report showed that industrial production in Japan rose 2% last month, exceeding expectations for a 0.2% rise after a 0.9% increase in April.
In addition, housing starts in Japan jumped 14.5% in May, far more than the expected 6.2% increase after a 5.8% rise the previous month.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.56% and trading at 150.92 and EUR/JPY trading up 0.71% at 129.14.
Hawkish comments from a Federal Reserve governor and rising U.S. consumer sentiment data bolstered the dollar's appeal by supporting expectations for an end to ultra-loose monetary policies later this year.
In U.S. trading on Friday, USD/JPY was trading at 99.25, up 0.91%, up from a session low of 98.35 and off a high of 99.45.
The pair was likely to find resistance at 99.45, the earlier high, and support at 98.35, the earlier low.
The Thomson Reuters/University of Michigan consumer sentiment index rose to 84.1 for a final reading in June, up from a 82.7 reading the previous month and also above expectations for a 82.8 reading.
The upbeat numbers came in wake of a report that revealed that the Chicago purchasing managers' index fell to 51.6 this month from 58.7 in May, exceeding expectations for a decline to 56.0.
Any reading over 50 signifies expansion, which left investors at ease to seek out dollar positions.
Elsewhere in the U.S., Federal Reserve Governor Jeremy Stein suggested earlier Friday that asset purchases may begin to taper in September provided the economy improves, which further boosted the dollar.
Better-than-expected U.S. economic indicators often send the dollar rising by fanning already growing expectations for the Federal Reserve to taper stimulus programs in the coming months.
Stimulus programs such as the Fed's monthly USD85 billion bond-buying program weaken the dollar to spur recovery, and talk of their dismantling sends the dollar rising.
The yen, meanwhile, traded lower against its U.S. counterpart despite bullish data at home.
Japan's manufacturing purchasing managers' index rose to 52.3 in June from 51.5 in May, the index's fastest expansion in almost two years.
A separate report showed that industrial production in Japan rose 2% last month, exceeding expectations for a 0.2% rise after a 0.9% increase in April.
In addition, housing starts in Japan jumped 14.5% in May, far more than the expected 6.2% increase after a 5.8% rise the previous month.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.56% and trading at 150.92 and EUR/JPY trading up 0.71% at 129.14.