Investing.com – The U.S. dollar was up against the yen on Tuesday, trading close to a five-week high, after a Chinese report showing that inflation rose less-than-expected in January dampened demand for the safe haven yen.
USD/JPY hit 83.62 during early European trade, the pair’s highest since Friday; the pair subsequently consolidated at 83.55, gaining 0.28%.
The pair was likely to find support at 83.09, Monday’s low and short-term resistance at 83.66, Friday’s high and a five-week high.
Earlier in the day, China’s statistics bureau said consumer prices rose 4.9% last month from a year earlier, compared with a 4.6% gain in December, disappointing expectations for a 5.4% increase.
The lower-than-expected number eased concerns over further monetary tightening by China’s central bank.
Also Tuesday, the Bank of Japan raised its economic assessment for the first time in nine months, saying “Japan’s economy is gradually emerging from the current deceleration phase”. The bank also kept its benchmark interest rate unchanged at 0.1%.
The yen was also lower against the euro, with EUR/JPY climbing 0.27% to hit 112.68.
Later in the day, the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.
USD/JPY hit 83.62 during early European trade, the pair’s highest since Friday; the pair subsequently consolidated at 83.55, gaining 0.28%.
The pair was likely to find support at 83.09, Monday’s low and short-term resistance at 83.66, Friday’s high and a five-week high.
Earlier in the day, China’s statistics bureau said consumer prices rose 4.9% last month from a year earlier, compared with a 4.6% gain in December, disappointing expectations for a 5.4% increase.
The lower-than-expected number eased concerns over further monetary tightening by China’s central bank.
Also Tuesday, the Bank of Japan raised its economic assessment for the first time in nine months, saying “Japan’s economy is gradually emerging from the current deceleration phase”. The bank also kept its benchmark interest rate unchanged at 0.1%.
The yen was also lower against the euro, with EUR/JPY climbing 0.27% to hit 112.68.
Later in the day, the U.S. was to publish government data on retail sales as well as a report on manufacturing activity in New York.