Investing.com - After looking as though it would snap a two-day winning streak against the dollar earlier in Thursday’s Asian session, the yen gained strength and move higher against the greenback even as traders appear convinced the Bank of Japan will adjust its inflation target at its meeting next week.
In Asian trading Thursday, USD/JPY fell 0.08% to 88.31 after trading as high as 88.80. The pair was likely to find support at 86.82, the low of January 9 and resistance at 88.86, the January 16 high.
Data released Wednesday showed by METI showed Japan’s tertiary index checked in at 0.3% in December following a 0.1% drop in November. Analysts expected a 0.1% increase last month.
After USD/JPY rose to its highest levels since June 2010 on January 14, the yen rose more than 1% in the past two trading sessions. Still, traders are widely expecting the Bank of Japan to adjust its inflation target to 2% when its two-day meeting concludes on January 22.
BoJ currently has an inflation target of 1%, but the central bank is under intense pressure from Japanese Prime Minister Shinzo Abe to raise that target. In a research note published today, Commonwealth Bank of Australia said USD/JPY could rise to 96.00.
Over the past 90 days, the yen is sitting on a double-digit loss, making it the worst-performing G10 currency.
Elsewhere, AUD/JPY slid 0.74% to 92.77 after the Australian Bureau of Statistics said that the Australian employment change fell to negative 5,500 from 13,900 in November. Analysts had expected Australian employment change to rise by 4,500 last month.
Additionally, the country’s unemployment rate ticked higher last month. The Australian Bureau of Statistics said that Australian unemployment rate rose to 5.4% in December and that the November reading was revised higher to 5.3% from 5.2%. Analysts expected a December reading of 5.4%.
Meanwhile, EUR/JPY fell 0.15% to 117.28. GBP/JPY fell 0.23% to 141.15.
In Asian trading Thursday, USD/JPY fell 0.08% to 88.31 after trading as high as 88.80. The pair was likely to find support at 86.82, the low of January 9 and resistance at 88.86, the January 16 high.
Data released Wednesday showed by METI showed Japan’s tertiary index checked in at 0.3% in December following a 0.1% drop in November. Analysts expected a 0.1% increase last month.
After USD/JPY rose to its highest levels since June 2010 on January 14, the yen rose more than 1% in the past two trading sessions. Still, traders are widely expecting the Bank of Japan to adjust its inflation target to 2% when its two-day meeting concludes on January 22.
BoJ currently has an inflation target of 1%, but the central bank is under intense pressure from Japanese Prime Minister Shinzo Abe to raise that target. In a research note published today, Commonwealth Bank of Australia said USD/JPY could rise to 96.00.
Over the past 90 days, the yen is sitting on a double-digit loss, making it the worst-performing G10 currency.
Elsewhere, AUD/JPY slid 0.74% to 92.77 after the Australian Bureau of Statistics said that the Australian employment change fell to negative 5,500 from 13,900 in November. Analysts had expected Australian employment change to rise by 4,500 last month.
Additionally, the country’s unemployment rate ticked higher last month. The Australian Bureau of Statistics said that Australian unemployment rate rose to 5.4% in December and that the November reading was revised higher to 5.3% from 5.2%. Analysts expected a December reading of 5.4%.
Meanwhile, EUR/JPY fell 0.15% to 117.28. GBP/JPY fell 0.23% to 141.15.