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Forex - USD/JPY rises after Japanese economic reports

Published 11/28/2014, 02:30 AM
Dollar higher vs. yen despite positive Japanese reports
USD/JPY
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EUR/JPY
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Investing.com - The U.S. dollar rose against the yen on Friday, despite the release of mostly positive Japanese economic reports as demand for the greenback remained broadly supported.

USD/JPY hit 118.34 during late Asian trade, the pair's highest since November 25; the pair subsequently consolidated at 118.13, gaining 0.33%.

The pair was likely to find support at 116.81, the low of November 16 and resistance at 118.97, the high of November 20 and a seven-year high.

Official data showed on Friday that Japan's household spending declined by an annualized rate of 4.0% in October, compared to expectations for a 4.8% drop, after a 5.6% fall the previous month.

A preliminary report also showed that industrial production in Japan rose 0.2% in October, confounding expectations for a 0.4% fall, after an increase of 2.9% in September.

A separate report showed that Japan's retail sales rose by an annualized rate of 1.4% in October, below expectations for a 1.5% rise, after a 2.3% advance the previous month.

Meanwhile, the dollar recovered from recent losses posted after a string of downbeat U.S. economic reports.

On Wednesday, data showed that U.S. initial jobless claims rose to the highest level since early September last week, while personal spending rose less than expected.

Durable goods orders rose in line with forecasts, but core durable goods orders fell unexpectedly.

Other reports showed that U.S. consumer sentiment was revised lower, manufacturing activity in the Chicago region slowed and data from the housing sector was mixed.

The yen was lower against the euro, with EUR/JPY rising 0.32% to 147.20.

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