Forex - USD/JPY hits fresh 3-1/2 year high after Japan data

Investing.com - The U.S. dollar rose to a fresh three-and-a-half year high against the yen on Friday, after Japanese economic growth data, while markets awaited the release of a highly anticipated U.S. employment report.

USD/JPY hit 95.44 during European morning trade, a three-and-a-half year high; the pair subsequently consolidated at 95.47, climbing 0.69%.

The pair was likely to find support at 93.79, Thursday's low and resistance at 95.44

Official data earlier showed that Japan's gross domestic product was flat in the fourth quarter, in line with expectations, following a 0.1% contraction in the previous quarter.

The report came after data showed that Japan's current account surplus rose unexpectedly to JPY0.36 trillion in January from a surplus of JPY0.11 trillion the previous month.

Analysts had expected the current account surplus to remain unchanged in January.

Meanwhile, the greenback remained supported after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell by 7,000 to a seasonally adjusted 340,000 last week, compared to expectations for an increase of 8,000 to 355,000.

The upbeat data fuelled optimism over a recovery in the U.S. labor market.

The yen was lower against the euro with EUR/JPY advancing 0.59%, to hit 125.04.

The euro found support after European Central Bank President Mario Draghi on Thursday said monetary policy will remain firmly accommodative and added that confidence was returning to financial markets.

Later in the day, the U.S. was publish government data on nonfarm payrolls and the unemployment rate, as well as data on average hourly earnings.