Investing.com - The dollar moved higher against the yen on Wednesday, following strong U.S. trade data for December, but investors remained cautious ahead of the minutes of the Federal Reserve’s December meeting and the upcoming U.S. jobs report.
USD/JPY rose to highs of 105.08, the strongest since January 2 and was last up 0.42% to 105.01, not far from the five year high of 105.43 reached last Thursday.
The pair was likely to find support at 104.16, Tuesday’s low and resistance at 105.43.
The dollar strengthened after data released on Tuesday showed that the U.S. trade deficit shrank to the lowest level in four years in November as exports rose to a record high.
Investors were turning their attention to the minutes of the Fed’s December meeting, due for release later Wednesday, for indications on the possible timing of further reductions in the bank’s stimulus program.
Investors were also awaiting Friday’s U.S. nonfarm report for December for indications of the strength of the recovery in the labor market.
The dollar was little changed against the euro, with EUR/USD edging up 0.04% to 1.3620.
The single currency remained under pressure after data on Tuesday showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month.
The soft data fuelled fresh concerns over the threat of deflation in the currency bloc ahead of the European Central Bank’s first policy meeting of the year on Thursday.
Elsewhere, the euro was higher against the yen, with EUR/JPY advancing 0.52% to 143.13.
USD/JPY rose to highs of 105.08, the strongest since January 2 and was last up 0.42% to 105.01, not far from the five year high of 105.43 reached last Thursday.
The pair was likely to find support at 104.16, Tuesday’s low and resistance at 105.43.
The dollar strengthened after data released on Tuesday showed that the U.S. trade deficit shrank to the lowest level in four years in November as exports rose to a record high.
Investors were turning their attention to the minutes of the Fed’s December meeting, due for release later Wednesday, for indications on the possible timing of further reductions in the bank’s stimulus program.
Investors were also awaiting Friday’s U.S. nonfarm report for December for indications of the strength of the recovery in the labor market.
The dollar was little changed against the euro, with EUR/USD edging up 0.04% to 1.3620.
The single currency remained under pressure after data on Tuesday showed that the annual rate of inflation in the euro zone slowed to 0.8% in December from 0.9% the previous month.
The soft data fuelled fresh concerns over the threat of deflation in the currency bloc ahead of the European Central Bank’s first policy meeting of the year on Thursday.
Elsewhere, the euro was higher against the yen, with EUR/JPY advancing 0.52% to 143.13.