7
 

Forex - USD/JPY higher on Japan data, BoJ easing expectations

By Investing.com  |  Forex News  |  Dec 28, 2012 08:52AM GMT  |   Add a Comment
 
AA
+
-
Investing.com - The U.S. dollar edged higher against the yen on Friday, still trading close to multi-month highs, as the release of mixed economic data from Japan added to expectations for further easing measures by the Bank of Japan.

USD/JPY hit 86.63 during European morning trade, the session high; the pair subsequently consolidated at 86.23, adding 0.15%.

The pair was likely to find support at 85.59, Thursday's low and resistance at 86.63, Thursday's high and the strongest level since April 2011.

Forex - USD/JPY higher on Japan data, BoJ easing expectations
Markit research group said that Japan's purchasing managers' index deteriorated to 45.0 in December from a reading of 46.5 the previous month.

A separate report showed that industrial production in Japan dropped far more-than-expected in November, declining 1.7% after a 1.6% increase the previous month. Analysts had expected industrial production to fall 0.5% last month.

Official data also showed that Japan's retail sales rose by 1.3% in November, more than the expected 1.1% increase, after a 1.2% drop the previous month.

Meanwhile, the yen remained under pressure after Shinzo Abe was formally approved as Japan’s prime minister by the lower house of parliament on Wednesday. Abe has recently called for unlimited easing by the Bank of Japan in order to weaken the local currency and spur growth in the recession-hit economy.

On Thursday, new Finance Minister Taro Aso said that Abe has ordered him to compile a stimulus package without adhering to a previously agreed cap on new bond issuance.

In the U.S., President Barack Obama was to meet congressional leaders later Friday at the White House for last-minute talks on a "fiscal cliff" deal to avoid automatic tax increases and broad spending cuts that threaten the US economy's recovery.

The yen was lower against the euro with EUR/JPY adding 0.11%, to hit 114.12.

Later in the day, the U.S. was to publish data on pending home sales, as well as a report on business conditions in the Chicago area and official data on crude oil stockpiles and natural gas inventories.



Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Dollar rises against yen, sterling shines
By 
Investing.com
 - Apr 16, 2014
Bitcoin down as Mt. Gox files for bankruptcy
By 
Investing.com
 - Apr 16, 2014

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

EUR/JPY
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg