Forex - USD/JPY climbs to 6-month high on U.S. data, BoJ

Published 11/02/2012, 10:27 AM
Updated 11/02/2012, 10:28 AM
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Investing.com - The U.S. dollar climbed to a six month high against the yen on Friday, boosted by upbeat U.S. employment data, while earlier comments by the Bank of Japan dampened demand for the yen.

USD/JPY hit 80.67 during U.S. morning trade, the pair's highest since April 27; the pair subsequently consolidated at 80.49, climbing 0.46%.

The pair was likely to find support at 80.11, the session low and resistance at 80.67, the day's high.

Sentiment was boosted after the Bureau of Labor Statistics said that the U.S. economy added 171,000 jobs in October, far more than the expected 125,000 increase.

The previous month's figure was revised up from 114,000 to 148,000.

The report also showed that the U.S. unemployment rate ticked up to 7.9% last month from 7.8% in September, in line with expectations.

The data came after the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits fell to 363,000 last week from 372,000 the previous week, compared to expectations for a decline to 370,000.

A separate report showed that U.S. private sector employment increased more-than-expected in October.

Meanwhile, the yen remained under pressure after the Bank of Japan said, in the minutes of its October policy meeting, that while the Japanese economy continues to level off, it will maintain the current level of economic stimulus.

Elsewhere, the yen was higher against the euro with EUR/JPY falling 0.27%, to hit 103.41.

Also Friday, Markit research group earlier said that Spain's manufacturing purchasing managers' index fell more-than-expected in October, ticking down to 43.5 from a reading 0f 44.6 the previous month.

Analysts had expected the manufacturing PMI to fall to 44.0 in October.

Separately, Italy's manufacturing PMI fell to 45.50 last month, from 45.70 in September, disappointing expectations for a reading of 45.90.


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