Investing.com - The dollar was higher against the yen on Friday as the yen came under pressure ahead of weekend elections in Japan’s upper house, which were expected to deliver a victory for Prime Minister Shinzo Abe.
USD/JPY hit session highs of 100.87, the highest since July 10, before slipping back to settle at 100.61, 0.18% higher for the day and up 0.66% for the week.
The pair is likely to find support at 99.45, Thursday’s low and resistance at 101.52, the high of July 8.
Investors were looking ahead to Sunday’s elections in Japan’s upper house, as opinion polls indicated that Prime Minister Shinzo Abe’s Liberal Democratic Party would claim victory.
A victory would allow Prime Minister Abe to continue to push through a series of structural reforms aimed at spurring economic growth and fighting deflation.
Demand for the dollar continued to be underpinned after comments by Federal Reserve Chairman Ben Bernanke earlier in the week eased concerns over how soon the bank will start tapering its easing program.
Bernanke indicated Wednesday that the bank still expects to start tapering its asset purchase program by the end of the year.
In the first day of his semi-annual testimony to Congress Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”
Bernanke also said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.
Elsewhere, the yen was lower against the euro on Friday, with EUR/JPY advancing 0.39% to 132.19 at the close of trade, extending the week’s gains to 1.28%.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing, while Japan is to release official data on consumer inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday as there are no relevant events on this day.
Monday, July 22
The U.S. is to publish private sector data on existing home sales, an important economic indicator.
Wednesday, July 24
The U.S. is to release official data on new home sales, a leading indicator of economic health.
Thursday, July 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, as well as the weekly government report on initial jobless claims.
Friday, July 26
Japan is to release official data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to round up the week with revised data on consumer sentiment from the University of Michigan.
USD/JPY hit session highs of 100.87, the highest since July 10, before slipping back to settle at 100.61, 0.18% higher for the day and up 0.66% for the week.
The pair is likely to find support at 99.45, Thursday’s low and resistance at 101.52, the high of July 8.
Investors were looking ahead to Sunday’s elections in Japan’s upper house, as opinion polls indicated that Prime Minister Shinzo Abe’s Liberal Democratic Party would claim victory.
A victory would allow Prime Minister Abe to continue to push through a series of structural reforms aimed at spurring economic growth and fighting deflation.
Demand for the dollar continued to be underpinned after comments by Federal Reserve Chairman Ben Bernanke earlier in the week eased concerns over how soon the bank will start tapering its easing program.
Bernanke indicated Wednesday that the bank still expects to start tapering its asset purchase program by the end of the year.
In the first day of his semi-annual testimony to Congress Bernanke said the central bank could scale back its asset purchases by the end of the year if the economy continues to improve, but added that there was no “preset course.”
Bernanke also said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.
Elsewhere, the yen was lower against the euro on Friday, with EUR/JPY advancing 0.39% to 132.19 at the close of trade, extending the week’s gains to 1.28%.
In the week ahead, the U.S. is to publish data on the housing sector and manufacturing, while Japan is to release official data on consumer inflation.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets. The guide skips Tuesday as there are no relevant events on this day.
Monday, July 22
The U.S. is to publish private sector data on existing home sales, an important economic indicator.
Wednesday, July 24
The U.S. is to release official data on new home sales, a leading indicator of economic health.
Thursday, July 25
The U.S. is to publish government data on durable goods orders, a leading indicator of production, as well as the weekly government report on initial jobless claims.
Friday, July 26
Japan is to release official data on consumer price inflation, which accounts for the majority of overall inflation.
The U.S. is to round up the week with revised data on consumer sentiment from the University of Michigan.