Investing.com - The U.S. dollar rose to a seven-day high against the yen on Thursday, as a record Japanese trade deficit and mounting expectations for further easing measures by the Bank of Japan weighed broadly on the yen.
USD/JPY hit 81.56 during early European trade, the pair’s highest since April 10; the pair subsequently consolidated at 81.49, rising 0.28%.
The pair was likely to find support at 81.07, the low of March 8 and resistance at 81.85, the high of April 10.
Government data showed earlier that Japan’s trade deficit widened more-than-expected in March, climbing to JPY0.62 trillion from a deficit of JPY0.32 trillion the previous month.
Analysts had expected the trade deficit to widen to JPY0.44 trillion in March.
The yen also came under pressure amid growing speculation that the BoJ will likely take fresh easing steps at its next policy-setting meeting on April 27.
BOJ Governor Masaaki Shirakawa reiterated in a speech earlier in New York that the central bank is “committed” to continuing monetary easing, after Deputy Governor Kiyohiko Nishimura said Wednesday that the bank is ready to implement additional easing if necessary.
Meanwhile, markets were jittery as Spain was preparing to auction up to EUR2.5 billion of government bonds later Thursday, after the yield on the country’s 10-year bonds rose above 6% earlier in the week.
The yen was also loser against the euro with EUR/JPY adding 0.32%, to hit 106.97.
Later in the day, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.
USD/JPY hit 81.56 during early European trade, the pair’s highest since April 10; the pair subsequently consolidated at 81.49, rising 0.28%.
The pair was likely to find support at 81.07, the low of March 8 and resistance at 81.85, the high of April 10.
Government data showed earlier that Japan’s trade deficit widened more-than-expected in March, climbing to JPY0.62 trillion from a deficit of JPY0.32 trillion the previous month.
Analysts had expected the trade deficit to widen to JPY0.44 trillion in March.
The yen also came under pressure amid growing speculation that the BoJ will likely take fresh easing steps at its next policy-setting meeting on April 27.
BOJ Governor Masaaki Shirakawa reiterated in a speech earlier in New York that the central bank is “committed” to continuing monetary easing, after Deputy Governor Kiyohiko Nishimura said Wednesday that the bank is ready to implement additional easing if necessary.
Meanwhile, markets were jittery as Spain was preparing to auction up to EUR2.5 billion of government bonds later Thursday, after the yield on the country’s 10-year bonds rose above 6% earlier in the week.
The yen was also loser against the euro with EUR/JPY adding 0.32%, to hit 106.97.
Later in the day, the U.S. was to release official data on unemployment claims, followed by industry data on existing home sales and a report on manufacturing activity in the Philadelphia area.