Investing.com - The dollar rose against the yen on Wednesday after stronger-than-expected Japanese machinery data hit the wire and sparked demand for risk assets such as stocks, which sent investors selling the safe-haven yen.
In Asian trading on Wednesday, USD/JPY hit 79.62, up 0.14%, up from a low of 79.50 and off a high of 79.67.
Support for the unit was seen at 79.40, the low on June 10, and resistance seen at 79.67, the earlier high.
In Japan, core machinery orders rose by 5.7% in April, outpacing market calls for a 2.1% gain, which sent the yen falling against the dollar as investors sought better returns in the country's stock markets.
Core machinery orders indicate the intensity of capital investment taking place in a country and serve as a leading indicator of manufacturing production.
Gains made in U.S. markets earlier pushed Japanese stocks up as well, which pushed the yen down.
Still, uncertainty over the fate of the economy in Europe, a key Japanese export market, sparked some safe-haven demand for yen that tempered the greenback's gains.
Eurozone finance ministers recently approved EUR100 billion in rescue financing for Spain to prop up the country's banks, though doubts remains how the country will lower its longer-term debt burdens and resume pre-downturn economic activity and growth rates.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.03% and trading at 123.76 and EUR/JPY down 0.08% and trading at 99.34.
Later Wednesday, the eurozone will unveil official data on industrial production, while Germany is to hold an auction of 10-year government bonds.
The U.S. will release official data on retail sales as well as reports on producer price inflation, business inventories and crude oil stockpiles.
In Asian trading on Wednesday, USD/JPY hit 79.62, up 0.14%, up from a low of 79.50 and off a high of 79.67.
Support for the unit was seen at 79.40, the low on June 10, and resistance seen at 79.67, the earlier high.
In Japan, core machinery orders rose by 5.7% in April, outpacing market calls for a 2.1% gain, which sent the yen falling against the dollar as investors sought better returns in the country's stock markets.
Core machinery orders indicate the intensity of capital investment taking place in a country and serve as a leading indicator of manufacturing production.
Gains made in U.S. markets earlier pushed Japanese stocks up as well, which pushed the yen down.
Still, uncertainty over the fate of the economy in Europe, a key Japanese export market, sparked some safe-haven demand for yen that tempered the greenback's gains.
Eurozone finance ministers recently approved EUR100 billion in rescue financing for Spain to prop up the country's banks, though doubts remains how the country will lower its longer-term debt burdens and resume pre-downturn economic activity and growth rates.
The yen, meanwhile, was up against the pound and up against the euro, with GBP/JPY down 0.03% and trading at 123.76 and EUR/JPY down 0.08% and trading at 99.34.
Later Wednesday, the eurozone will unveil official data on industrial production, while Germany is to hold an auction of 10-year government bonds.
The U.S. will release official data on retail sales as well as reports on producer price inflation, business inventories and crude oil stockpiles.