Forex - USD/JPY rises to fresh 6-1/2 month high

Investing.com - The U.S. dollar rose to a fresh six-and-a-half month high against the yen on Thursday, after the release of a flurry of U.S. economic data, while mounting speculation that the Bank of Japan may be pressured into implementing additional easing measures continued to weigh on the yen.

USD/JPY hit 81.45 during European afternoon trade, the pair's highest since April 24; the pair subsequently consolidated at 81.39, rallying 1.44%.

The pair was likely to find support at 80.12, the session low and resistance at 81.69, the high of. April 24.

The safe haven greenback gained ground after official data showed that the number of people who filed for unemployment assistance in the U.S. last week surged to the highest level since April 2011.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 10 rose by 78,000 to a seasonally adjusted 439,000, compared to expectations for an increase of 14,000 to 375,000.

In addition, data showed that consumer price inflation in the U.S. rose in line with expectations in October, while prices excluding food and energy costs increased more-than-expected.

A separate report showed that the New York Federal Reserve’s index of manufacturing conditions improved unexpectedly in November, but remained in contraction territory for the fourth consecutive month.

Meanwhile, the yen remained under pressure after Shinzo Abe, the head of Japan's main opposition party and frontrunner in next month's election, called for aggressive monetary easing by the BoJ to support growth.

Abe said he wants the central bank to set interest rates at zero or below zero to enhance lending and added that he wants to work with the BOJ to reverse the trend of a stronger yen, as it hurts the competitiveness of small firms.

The comments came after Japanese Prime Minister Yoshihiko Noda said on Wednesday he could dissolve the lower house of the parliament on November 16, suggesting that an election will be held next month.

The yen was also sharply lower against the euro with EUR/JPY jumping 1.56%, to hit 103.79.

Also Thursday, official data released showed that the euro zone's economy shrank 0.1% in the third quarter, following a contraction of 0.2% in the preceding quarter. A technical recession is defined as two straight quarters of contraction.

Later in the day, the U.S. was to release a report on manufacturing activity in Philadelphia, while a speech by Federal Reserve Chairman Ben Bernanke was to be closely watched for any indications on the future possible direction of monetary policy.