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Forex - USD/JPY falls after tertiary industry index reading

Published 04/11/2013, 10:20 PM
Updated 04/11/2013, 10:21 PM
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Investing.com - The U.S. dollar is trading lower against the Japanese yen during Friday’s Asian session following the release of Japan’s tertiary industry index report for February.

In Asian trading Friday, USD/JPY fell 0.22% to 99.46. The pair was likely to find support at 98.90, Wednesday’s low and resistance at 100.00.

In data released earlier today, Japan’s Ministry of Economy, Trade and Industry said the country’s index of tertiary industries rose 1.1% in February, topping expectations for an increase of 0.7%. The report indicated industries moving higher included wholesale and retail trade, finance, communications, health care and utilities.

Industries that decline included education, and transportation.

USD/JPY is showing signs of a struggle with the lofty 100 area, though if that price breaks, the yen could plunge from there against the greenback. The psychologically important 100 level is where many traders have stop orders and where options traders may be forced to cover if they sold options at that strike.

Meanwhile, EUR/JPY fell 0.07% to 130.50. The pair sought to test support at 129.71, the earlier low, and resistance at 133.65, the high from Jan. 14, 2010.

The common currency is mixed against the other majors after the International Monetary Fund’s World Economic Outlook, in which it pared estimate for U.S. GDP growth this year to 1.7% from a previous estimate of 2%. The IMF also cut its estimate for global growth to 3.4% from 3.5%.

The IMF added that it expects the euro zone’s GDP to contract 0.2% this year, citing uncertainly from Italy’s election results earlier this year. Italy is the region’s third-largest economy.

NZD/JPY fell 0.21% to 85.86 despite some strong housing data of New Zealand. AUD/JPY fell 0.18% to 104.93.


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