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Forex - USD/JPY erases gains, moves lower after weak U.S. jobs data

Published 08/19/2010, 09:19 AM
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EUR/JPY
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Investing.com – The U.S. dollar erased early gains against the yen on Thursday, moving lower after government data showed that U.S. initial jobless claims rose unexpectedly last week.

USD/JPY retreated from 85.92, the daily high, to hit 85.28 during European afternoon trade, shedding 0.20%.

The pair was likely to find support at 84.73, the low of August 11 and a 15-year low and resistance at 86.73, the high of August 13.

Earlier in the day, U.S. official data said the number of individuals filing for initial jobless benefits last week rose to a seasonally adjusted 500K, after rising to a revised 488K in the preceding week.

Analysts had expected claims to decline to 475K last week.

The yen was also up against the euro, with EUR/JPY shedding 0.04% to hit 109.79.

Also Thursday, Japan's deputy finance minister Naoki Minezaki said the yen's rise is having a severe effect on the country's exporters.

Meanwhile, local media reported that the Bank of Japan is looking at expanding a bank lending program to lower interest rates and help weaken the yen.

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