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USD/JPY inches above 120 for the first time since mid-February

Published 03/02/2015, 07:45 PM
Updated 03/02/2015, 07:51 PM
The U.S. dollar gained slightly against the Yen on Monday

Investing.com -- USD/JPY edged above 120.00 for the first time since mid-February in spite of disappointing U.S. economic data.

USD/JPY reached a high of ¥120.26 on Monday, moving above the 120.00 for the first time since Feb. 12. The pair likely gained support at $108.16 the low from late-October and resistance at 120.67, the high from Dec. 29.

The U.S. dollar index, which measures the greenback's strength against a basket of six other major currencies, rose to its highest level on Monday in more than 11 years. The index edged up 0.2% in afternoon trading to close at 95.478. The Dow Jones Industrial Average also reached a record-high, gaining 0.86% or 155.93 to 18,288.63.

The Nikkei 225 Index, meanwhile, gained 0.05% or 9.02 points to 18,836.93. Japan's monetary base also fell lower than expected last month, dropping to 36.7% from 37.4%. Analysts had expected it to drop to 34.3%.

The release of disappointing economic data in the United States prevented any further gains against the yen. The Institute of Supply Management's Index of National Factory Activity fell to 52.9 for the month of February from a reading of 53.5 a month earlier. It marked the lowest level of U.S. manufacturing growth since January, 2014.

A labor dispute on the west coast that has virtually shut down some of the busiest seaports on the Pacific is thought to have wide-ranging ramifications. The slowdown has impacted supplier deliveries, causing import and export numbers on the west coast to drop at a high rate.

Japan is currently the fourth-largest trading partner with the United States. In 2013, the last measure of yearly international trading data, the two partners exchanged $204 billion in traded goods, according to the Office of the United States Trade Representative.

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