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Forex - USD/JPY holds steady after strong U.S. data

Published 07/23/2015, 10:04 AM
© Reuters.  Greenback almost unchanged vs. yen, U.S. data lends support
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar edged higher against the yen on Thursday, boosted by data showing that U.S. jobless claims fell to the lowest level since November 1973 last week and as progress on the Greek debt front weighed on demand for the safe-haven yen.

USD/JPY hit 124.19 during U.S. morning trade, the pair's highest since Tuesday; the pair subsequently consolidated at 123.92.

The pair was likely to find support at 123.54, Wednesday's low and resistance at 124.50, Tuesday's high and a more than one-month high.

The U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 18 fell by 26,000 to a 40-year low of 255,000 from the previous week’s total of 281,000.

Analysts had expected initial jobless claims to fall by 1,000 to 280,000 last week.

The data added to expectations for an upcoming U.S. rate hike after Federal Reserve Chair Janet Yellen said last week that the central bank is likely to raise rates "at some point this year."

Separately, market sentiment improved after a majority of Greek lawmakers voted in favor of a second set of reforms late Wednesday, signalling that negotiations on an €86 billion European Union bailout can begin. The country is aiming for a deal by the middle of next month.

The new measures include changes to Greek banking and an overhaul of the judiciary system.

Greece had passed an initial set of austerity measures imposed by its creditors last week. These were a mix of economic reforms and budget cuts demanded before bailout talks could continue.

The yen was also lower against the euro, with EUR/JPY gaining 0.59% to 136.25.

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