Investing.com - The U.S. dollar rose to a three-day high against the yen on Wednesday, after data showing that the U.S. manufacturing sector expanded at the fastest rate in 10 months in April sent the greenback broadly higher.
USD/JPY hit 80.56 during early European trade, the pair’s highest since April 27; the pair subsequently consolidated at 80.55, rising 0.57%.
The pair was likely to find support at 79.92, the low of February 24 and resistance at 80.92, the high of April 17.
The dollar found support after the Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.
The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
In Japan, government data showed that average cash earnings jumped 1.3% in March, above expectations for a 0.4% rise and following a 0.1% gain the previous month.
Investors remained cautious ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Elsewhere, the yen was also lower against the euro with EUR/JPY adding 0.46%, to hit 106.51.
Later in the day, the U.S. was to produce a report on non-farm employment change, followed by government data on factory orders and crude oil stockpiles.
USD/JPY hit 80.56 during early European trade, the pair’s highest since April 27; the pair subsequently consolidated at 80.55, rising 0.57%.
The pair was likely to find support at 79.92, the low of February 24 and resistance at 80.92, the high of April 17.
The dollar found support after the Institute for Supply Management said Tuesday that its index of manufacturing activity rose to 54.8 from 53.4 in March, defying expectations for a decline to 53.0.
The robust data offset concerns that the economic recovery in the U.S. is losing momentum in the wake of a string of recent disappointing data and dampened speculation over the possibility of a third round of easing by the Federal Reserve.
In Japan, government data showed that average cash earnings jumped 1.3% in March, above expectations for a 0.4% rise and following a 0.1% gain the previous month.
Investors remained cautious ahead of weekend elections in Greece and France and the European Central Bank’s policy meeting on Thursday.
Elsewhere, the yen was also lower against the euro with EUR/JPY adding 0.46%, to hit 106.51.
Later in the day, the U.S. was to produce a report on non-farm employment change, followed by government data on factory orders and crude oil stockpiles.