Investing.com - The U.S. dollar traded lower against the Japanese yen during Wednesday’s Asian session as disappointing U.S. employment data spurred safe-haven buying in the yen.
In Asian trading Wednesday, USD/JPY fell 0.24% to 97.91. The pair was likely to find support at 97.76, Monday’s low and resistance at 98.69, the high of October 15.
The yen has traded higher over the past few months against the greenback as several macro issues, including the recent government shutdown in the U.S. buoyed the yen as a safe-haven alternative.
However, that does not mean the short yen trade has evaporate. Goldman Sachs sees USD/JPY at 103 in six months and 125 in 2016, CNBC reported earlier this week.
In U.S. economic news out Tuesday, the U.S. Labor Department said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000. July's figure was revised down to 89,000 from 104,000. The unemployment rate in the world’s largest economy fell to 7.2% from 7.3%.
That jobs data could mean the Federal reserve will have to put tapering of its monetary easing for another five or six months, but it is widely expected that when tapering actually does commence, it will provide lift to USD/JPY.
Elsewhere, AUD/JPY rose 0.06% to 95.37. Earlier Wednesday, the Australian Bureau of Statistics said that Australia’s consumer price inflation rose to 1.2% in the third quarter after a 0.4% reading in the prior quarter. Analysts expected a third-quarter reading of 0.8%.
In a separate report, the Reserve Bank of Australia said that Australian trimmed mean CPI was 0.7% last quarter up from 0.6% in the second quarter. Analysts expected a third-quarter reading of 0.6%.
In Asian trading Wednesday, USD/JPY fell 0.24% to 97.91. The pair was likely to find support at 97.76, Monday’s low and resistance at 98.69, the high of October 15.
The yen has traded higher over the past few months against the greenback as several macro issues, including the recent government shutdown in the U.S. buoyed the yen as a safe-haven alternative.
However, that does not mean the short yen trade has evaporate. Goldman Sachs sees USD/JPY at 103 in six months and 125 in 2016, CNBC reported earlier this week.
In U.S. economic news out Tuesday, the U.S. Labor Department said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.
The previous month’s figure was revised up to a gain of 193,000 from a previously reported increase of 169,000. July's figure was revised down to 89,000 from 104,000. The unemployment rate in the world’s largest economy fell to 7.2% from 7.3%.
That jobs data could mean the Federal reserve will have to put tapering of its monetary easing for another five or six months, but it is widely expected that when tapering actually does commence, it will provide lift to USD/JPY.
Elsewhere, AUD/JPY rose 0.06% to 95.37. Earlier Wednesday, the Australian Bureau of Statistics said that Australia’s consumer price inflation rose to 1.2% in the third quarter after a 0.4% reading in the prior quarter. Analysts expected a third-quarter reading of 0.8%.
In a separate report, the Reserve Bank of Australia said that Australian trimmed mean CPI was 0.7% last quarter up from 0.6% in the second quarter. Analysts expected a third-quarter reading of 0.6%.