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Forex - USD/JPY edges higher but gains limited

Published 05/31/2013, 03:00 AM
Updated 05/31/2013, 03:01 AM
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar edged higher against the yen on Friday, but gains were limited as the previous day's weak U.S. data lessened expectations for the Federal Reserve to unwind its stimulus program in the near future.

USD/JPY hit 101.28 during early European trade, the session high; the pair subsequently consolidated at 100.85, adding 0.12%.

The pair was likely to find support at 98.65, the low of May 9 and resistance at 102.52, the high of May 28.

On Thursday, the Department of Labor said the number of people who filed for unemployment assistance rose to a seasonally adjusted 354,000 last week, compared to expectations for a decline to 340,000.

Meanwhile, the Commerce Department said U.S. first quarter gross domestic product was revised down to 2.4% from a preliminary reading of 2.5%. Analysts had expected an unchanged reading.

Separately, the National Association of Realtors said that its pending home sales index rose 0.3% to hit the highest level since April 2010 last month, but fell short of expectations for a 1.1% increase.

In Japan, preliminary data showed that industrial production in Japan rose 1.7% in April, beating expectations for a 0.6% rise, after a 0.9% increase the previous month.

A separate report showed that the core consumer price index in Tokyo rose 0.1% in May, confounding expectations for a 0.2% decline, after a 0.3% fall the previous month.

Official data showed however that household spending in Japan rose less-than-expected last month, advancing 1.5%, after a 5.2% increase in March. Analysts had expected household spending to rise 3.1% in April.

The yen was fractionally lower against the euro with EUR/JPY edging up 0.08%, to hit 131.52.

Later in the day, the U.S. was to release revised data on consumer sentiment from the University of Michigan, as well as data on personal income and expenditure and a report on manufacturing activity in Chicago.


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