Forex - USD/JPY slightly lower after Tankan reports

Published 03/31/2013, 10:03 PM
Updated 03/31/2013, 10:04 PM
USD/JPY
-
EUR/JPY
-
AUD/JPY
-
NZD/JPY
-
Investing.com – The U.S. dollar is trading lower against the Japanese yen during Monday’s Asian session following the release of the Tankan large non-manufacturing index data and the Tankan manufacturing index.

In Asian trading Monday, USD/JPY is lower by 0.29% at 93.96. The pair was likely to find support at 93.88, Thursday’s low, and resistance at 94.91, Wednesday’s high.

Earlier today, Bank of Japan said that Tankan Manufacturing index rose to a seasonally adjusted -8 in the first quarter from -12 in the fourth quarter. Analysts expected a first-quarter reading of -7.

In another report, Bank of Japan said that Japan’s Tankan large non-manufacturing index rose to a seasonally adjusted 6 in March from 4 in February. Analysts expected a March reading of 8.

Buyers were also stepping into the yen as an alternative safe-haven play to the dollar as Cyprus fears are once again seen spooking global markets.

EUR/JPY fell 0.67% to 119.99 after Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus’s larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia.

Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized.

Meanwhile, AUD/JPY slipped 0.56% to 97.64 while NZD/JPY is off 0.53% at 78.48. The Australian and New Zealand dollars are seen weaker after after China reported March PMI of 50.9, slightly below analysts’ estimates calling for 51.2. Readings above 50 indicate expansion.

China is the largest trading partner for both Australia and New Zealand.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.