Investing.com - The dollar weakened against the yen on Thursday as investors avoided the greenback on fears the arrival of the Ebola virus in the U.S. may worry the population and slow recovery, while greenback profit taking sent investors to nicely-priced yen positions as well.
In U.S. trading, USD/JPY was down 0.66% at 108.17, up from a session low of 108.05 and off a high of 109.12.
The pair was expected to test support at 106.79, the low from Sept. 16, and resistance at 110.11, Wednesday's high.
Expectations for U.S. monetary policy to grow less accommodative at a time when Japan may move to loosen have firmed the dollar in recent sessions, though profit taking cooled the greenback's advance in Thursday trading.
Elsewhere, news a man traveling from Liberia infected with the Ebola virus arrived in the United States and came into contact with others softened the greenback as well by stoking market concerns that if general fears grow, traveling and shopping may slow, which could affect U.S. recovery.
Separately, the U.S. Labor Department reported earlier that the number of individuals filing for initial jobless benefits in the week ending Sept. 27 decreased by 8,000 to 287,000 from the previous week’s revised total of 295,000.
Analysts had expected jobless claims to rise by 2,000 to 297,000 last week, though the greenback softened against the yen anyway, as the Japanese currency has enjoyed safe-haven demand due to lackluster European and Asian manufacturing indicators unveiled recently.
Investors were now looking ahead to Friday’s U.S. nonfarm payrolls report, which was expected to show that the economy about 215,000 jobs in September.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.35% at 136.97, and GBP/JPY trading down 1.01% at 174.44.