Investing.com - The dollar fell against the yen on Monday on stronger-than-expected manufacturing sentiment data out of Japan.
In Asian trading on Monday, USD/JPY hit 79.77, down 0.05%, also a session low and off a high of 79.97.
The pair was likely to find support at 79.14, Friday’s low, and resistance at 79.99, Friday’s high.
The Bank of Japan early Monday reported that its Tankan Manufacturing index rose to a seasonally adjusted -1 in the second quarter from -4 in the preceding quarter.
Analysts were forecasting the Tankan Manufacturing index to remain unchanged at -4.
The index measures sentiment among large Japanese manufacturers.
The news sent the dollar falling as investors sold the safe-haven currency and took on risk, namely in equities.
However, both the dollar and the yen serve as safe haven currencies, which prevented the dollar from swinging too low against the Japanese currency.
The dollar looked set to fall further on demand for Japanese equities, which were poised to climb on Monday on the coattails of their European and U.S. counterparts.
Markets soared last week on news the European Union gave its rescue fund, the European Stability Mechanism, approval to recapitalize banks directly as well as the green light to buy government bonds directly to ease credit conditions in troubled countries.
E.U. policymakers also agreed to launch a supervisory organization for eurozone banks by the end of this year.
The news sparked widespread optimism that European leaders are taking greater strides to firewall and extinguish the debt crisis.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.28% and trading at 125.00 and EUR/JPY down 0.22% and trading at 100.82.
Later Monday in the U.S., the Institute for Supply Management will release its report on activity in the manufacturing sector.
In Asian trading on Monday, USD/JPY hit 79.77, down 0.05%, also a session low and off a high of 79.97.
The pair was likely to find support at 79.14, Friday’s low, and resistance at 79.99, Friday’s high.
The Bank of Japan early Monday reported that its Tankan Manufacturing index rose to a seasonally adjusted -1 in the second quarter from -4 in the preceding quarter.
Analysts were forecasting the Tankan Manufacturing index to remain unchanged at -4.
The index measures sentiment among large Japanese manufacturers.
The news sent the dollar falling as investors sold the safe-haven currency and took on risk, namely in equities.
However, both the dollar and the yen serve as safe haven currencies, which prevented the dollar from swinging too low against the Japanese currency.
The dollar looked set to fall further on demand for Japanese equities, which were poised to climb on Monday on the coattails of their European and U.S. counterparts.
Markets soared last week on news the European Union gave its rescue fund, the European Stability Mechanism, approval to recapitalize banks directly as well as the green light to buy government bonds directly to ease credit conditions in troubled countries.
E.U. policymakers also agreed to launch a supervisory organization for eurozone banks by the end of this year.
The news sparked widespread optimism that European leaders are taking greater strides to firewall and extinguish the debt crisis.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.28% and trading at 125.00 and EUR/JPY down 0.22% and trading at 100.82.
Later Monday in the U.S., the Institute for Supply Management will release its report on activity in the manufacturing sector.