Investing.com - The dollar extended last week's gains against the yen on Monday in wake of sluggish industrial production figures coming out of the U.S. coupled with anticipation that further monetary easing is on the way in Japan
In Asian trading on Monday, USD/JPY was trading at 81.50, up 0.22%, up from a session low of 81.50 and off a high of 81.59.
The pair was likely to find support at 79.21, Tuesday’s low, and resistance at 81.45, Thursday’s high.
The yen continued to come under downward pressure on Monday on building sentiments that opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections.
Shinzo has said he favors more monetary stimulus to jolt the Japanese economy.
The Bank of Japan will meet this week to discuss monetary policy and markets are eagerly awaiting the bank's move and statement.
Meanwhile, weak indicators coming out of the U.S. last week continued to fuel demand for the dollar as a safety play.
U.S. industrial production fell unexpectedly in October, the Federal Reserve reported Friday.
Industrial production fell 0.4% following a gain of 0.2% in September, whose figure was revised down from 0.4%.
Analysts had expected industrial production to rise 0.2% in October, and the disappointment sparked a risk-off trading session that fueled dollar demand.
Superstorm Sandy disrupted business for a good chunk of the northeastern U.S. last month, which reflected in the numbers.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% in September, missing expectations for an increase to 78.3%.
Weak U.S. indicators often send the dollar gaining as investors sell stocks for profits.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.32% and trading at 129.55 and EUR/JPY trading up 0.35% at 103.98.
Later Monday, the U.S. is to release industry data on existing home sales, a leading indicator of economic health.
In Asian trading on Monday, USD/JPY was trading at 81.50, up 0.22%, up from a session low of 81.50 and off a high of 81.59.
The pair was likely to find support at 79.21, Tuesday’s low, and resistance at 81.45, Thursday’s high.
The yen continued to come under downward pressure on Monday on building sentiments that opposition leader Shinzo Abe may become the country's next prime minister during Dec. 16 elections.
Shinzo has said he favors more monetary stimulus to jolt the Japanese economy.
The Bank of Japan will meet this week to discuss monetary policy and markets are eagerly awaiting the bank's move and statement.
Meanwhile, weak indicators coming out of the U.S. last week continued to fuel demand for the dollar as a safety play.
U.S. industrial production fell unexpectedly in October, the Federal Reserve reported Friday.
Industrial production fell 0.4% following a gain of 0.2% in September, whose figure was revised down from 0.4%.
Analysts had expected industrial production to rise 0.2% in October, and the disappointment sparked a risk-off trading session that fueled dollar demand.
Superstorm Sandy disrupted business for a good chunk of the northeastern U.S. last month, which reflected in the numbers.
A separate report showed that the U.S. capacity utilization rate declined to 77.8% in October from 78.2% in September, missing expectations for an increase to 78.3%.
Weak U.S. indicators often send the dollar gaining as investors sell stocks for profits.
The yen, meanwhile was down against the pound and down against the euro, with GBP/JPY up 0.32% and trading at 129.55 and EUR/JPY trading up 0.35% at 103.98.
Later Monday, the U.S. is to release industry data on existing home sales, a leading indicator of economic health.