Investing.com - The U.S. dollar pulled back from an 11-month high against the yen on Thursday, as market participants consolidated their positions after this week’s strong gains by the greenback.
USD/JPY pulled back from 84.18, the session high and the pair’s highest since April 13, 2011, to hit 83.36 during U.S. morning trade, shedding 0.43%.
The pair was likely to find support at 82.87, Wednesday’s low and resistance at 84.18, the session high.
Earlier Thursday, the Department of Labor said number of people who filed for unemployment assistance in the U.S. last week fell back to a four-year low of 351,000, beating expectations for a decline to 356,000.
Separate reports showed that manufacturing activity in the Philadelphia region expanded at a faster than forecast rate in March, rising to the highest level in 11 months, while manufacturing activity in New York improved unexpectedly, climbing to the highest level since June 2010.
Elsewhere, official data showed that U.S. producer price inflation rose slightly less-than-expected in February, increasing by a seasonally adjusted 0.4%, below expectations for a 0.5% gain, while core producer prices rose 0.2% last month, in line with expectations.
The data underlined the view that the U.S. economic recovery is gathering momentum, after the Federal Reserve upgraded its outlook on the economy earlier this week, causing investors to trim back expectations for a third round of quantitative easing.
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier this week, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
The dollar was mixed against the euro and the pound, with EUR/USD adding 0.20% to hit 1.3057 and GBP/USD slipping 0.17% to hit 1.5649.
In the euro zone, official data earlier showed that the number of people employed across the single currency bloc fell by 0.2% in the last three months of 2011 and also 0.2% year on year, in line with expectations.
USD/JPY pulled back from 84.18, the session high and the pair’s highest since April 13, 2011, to hit 83.36 during U.S. morning trade, shedding 0.43%.
The pair was likely to find support at 82.87, Wednesday’s low and resistance at 84.18, the session high.
Earlier Thursday, the Department of Labor said number of people who filed for unemployment assistance in the U.S. last week fell back to a four-year low of 351,000, beating expectations for a decline to 356,000.
Separate reports showed that manufacturing activity in the Philadelphia region expanded at a faster than forecast rate in March, rising to the highest level in 11 months, while manufacturing activity in New York improved unexpectedly, climbing to the highest level since June 2010.
Elsewhere, official data showed that U.S. producer price inflation rose slightly less-than-expected in February, increasing by a seasonally adjusted 0.4%, below expectations for a 0.5% gain, while core producer prices rose 0.2% last month, in line with expectations.
The data underlined the view that the U.S. economic recovery is gathering momentum, after the Federal Reserve upgraded its outlook on the economy earlier this week, causing investors to trim back expectations for a third round of quantitative easing.
The yen has remained under pressure since last month’s surprise decision by the Bank of Japan to ease monetary policy and set a targeted inflation rate, while the country’s increasing trade deficit has threatened the yen’s traditional safe haven status.
Earlier this week, the BoJ held off announcing any fresh easing measures following its policy meeting, but enlarged a loan fund for businesses in “high-growth” sectors, indicating that the central bank has not moved away from an easing policy.
The dollar was mixed against the euro and the pound, with EUR/USD adding 0.20% to hit 1.3057 and GBP/USD slipping 0.17% to hit 1.5649.
In the euro zone, official data earlier showed that the number of people employed across the single currency bloc fell by 0.2% in the last three months of 2011 and also 0.2% year on year, in line with expectations.