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Forex - USD/JPY rises near 6-year peak, U.S. data ahead

Published 09/26/2014, 08:03 AM
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Investing.com - The U.S. dollar rose against the yen on Friday, to trade close to six-year highs as expectations for an ealry rate hike by the Federal Reserve continued to support the greenback and investors eyed upcoming U.S. economic growth data.

USD/JPY hit 109.16 during European afternoon trade, the session high; the pair subsequently consolidated at 109.11, rising 0.35%.

The pair was likely to find support at 108.24, the low of September 23 and resistance at 109.48, the high of September 19 and a six-year peak.

Demand for the dollar remained supported by mounting expectations that the Fed could raise interest rates sooner than expected.

On Thursday, Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015.

Earlier Friday, data showed that Japan's consumer price inflation rose at an annualized rate of 3.3% this month, below expectations for a 3.4% increase.

Core consumer price inflation, which excludes fresh food, rose 3.1% in September from a year earlier, compared to expectations for an increase of 3.2%.

The yen was lower against the euro, with EUR/JPY adding 0.21% to 138.92.

Sentiment on the euro remained vulnerable after data earlier showed that the Gfk German consumer climate index ticked down to 8.3 this month, from a reading of 8.6 in August. Analysts had expected the index to slip to 8.5.

The report added to concerns over the outlook for growth in the euro zone's biggest economy as data on Wednesday showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September.

The single currency was hit on Thursday after European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.

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