Forex - USD/JPY jumps on Japan GDP revision

Published 06/09/2013, 09:59 PM
Updated 06/09/2013, 10:00 PM
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Investing.com - The U.S. dollar surged against the Japanese yen during Monday’s Asian session after some upbeat economic data out of the world’s third-largest economy.

In Asian trading Monday, USD/JPY climbed 0.39% to 97.93. The pair is likely to find support at 95.00, Friday’s low and resistance at 99.45, Thursday’s high.

Monday’s rise for USD/JPY comes after the greenback tumbled 2.26% last week against the yen, though the dollar was bid higher Friday against the Japanese currency amid some supportive U.S. economic data.

In U.S. economic news delivered last Friday, the U.S. Labor Department said the U.S. economy added 175,000 jobs in May, but added the unemployment rate rose to 7.6% from 7.5%. The April reading was revised lower to 149,000 from 165,000 while the March reading was revised down to 138,000 from 142,000.

Earlier Monday, Japan revised its first-quarter GDP reading to show growth of 4.1%. The initial reading was 3.5% growth.

In a separate report, the Ministry of Finance said that Japan’s current account balance rose to a seasonally adjusted JPY850 billion from JPY340 billion in April. Analysts expected an increase to JPY390 billion.

In particular, the GDP report comes at a critical time for Abenomics, the colloquial term for Prime Minister Shinzo Abe’s efforts to bolster the Japanese economy. Traders were mostly unimpressed by Abe’s plan, unveiled last week, to bolster Japanese incomes.

However, the upward GDP revision could hearten Japan bulls and give voters reason to give Abe’s party a majority in next month’s upper house elections.

Elsewhere, EUR/JPY rose 0.38% to 129.47 while AUD/JPY inched up 0.01% to 92.60. NZD/JPY rose 0.29% to 77.07.


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