Investing.com - The dollar firmed against the yen on Friday after consumer sentiment data in the U.S. came in stronger than expected and rekindled speculation that the Federal Reserve may wind down stimulus measures very soon.
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery.
In U.S. trading on Friday, USD/JPY was trading at 100.92, up 0.18%, up from a session low of 100.23 and off a high of 101.29.
The pair was likely to find resistance at 101.29, the earlier high, and support at 100.23, the earlier low.
The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April.
Analysts were expecting the index to remain unchanged this month, which boosted the dollar.
A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49.0 in April, beating expectations for a rise to 50.0.
Elsewhere, official data revealed that U.S. personal spending fell 0.2% in April, defying expectations for a 0.1% rise and following a 0.1% increase the previous month, though markets shrugged off the data.
Friday's economic indicators firmed the greenback over the yen, though the Japanese currency did advance elsewhere.
To stave off deflationary pressures, the Bank of Japan has rolled out massive monetary stimulus measures in recent months, which as a percentage of gross domestic product, are much larger than those undertaken by the Federal Reserve in the U.S.
As a result, the yen has plunged in value this year, though Bank of Japan Governor Haruhiko Kuroda said recently that a stable financial system is just as important to the country as growth-oriented policies, which investors interpreted as a sign that Tokyo may adopt a wait-and-see approach to monetary policy and forgo expanding stimulus programs for now.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.22% and trading at 153.11 and EUR/JPY trading down 0.46% at 130.82.
Stimulus measures such as the Fed's monthly USD85 billion bond-buying program weaken the greenback to spur recovery.
In U.S. trading on Friday, USD/JPY was trading at 100.92, up 0.18%, up from a session low of 100.23 and off a high of 101.29.
The pair was likely to find resistance at 101.29, the earlier high, and support at 100.23, the earlier low.
The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April.
Analysts were expecting the index to remain unchanged this month, which boosted the dollar.
A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49.0 in April, beating expectations for a rise to 50.0.
Elsewhere, official data revealed that U.S. personal spending fell 0.2% in April, defying expectations for a 0.1% rise and following a 0.1% increase the previous month, though markets shrugged off the data.
Friday's economic indicators firmed the greenback over the yen, though the Japanese currency did advance elsewhere.
To stave off deflationary pressures, the Bank of Japan has rolled out massive monetary stimulus measures in recent months, which as a percentage of gross domestic product, are much larger than those undertaken by the Federal Reserve in the U.S.
As a result, the yen has plunged in value this year, though Bank of Japan Governor Haruhiko Kuroda said recently that a stable financial system is just as important to the country as growth-oriented policies, which investors interpreted as a sign that Tokyo may adopt a wait-and-see approach to monetary policy and forgo expanding stimulus programs for now.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.22% and trading at 153.11 and EUR/JPY trading down 0.46% at 130.82.