Investing.com - The dollar traded steadily against the yen on Tuesday after a widely-followed U.S. manufacturing index fell way below expectations a day after manufacturing sentiment surprised on the upside in Japan.
In Asian trading on Tuesday, USD/JPY hit 79.52, up 0.01%, up from a session low of 79.41 and off a high of 79.54.
The pair was likely to find support at 79.31, the low from July 2, and resistance at 79.86, the high from July 2.
Manufacturing, once the bright spot in the U.S. economy earlier in the year, took a hit earlier.
The Institute for Supply Management reported that its index of manufacturing activity fell to 49.7 in June from 53.5 in May.
New orders dropped to 47.8 from 60.1, while the employment gauge fell to 56.6 from 56.9.
A reading above 50.0 indicates industry expansion, while below indicates contraction.
June's figure was the lowest reading since July 2009 and well below analyst forecasts for the index to slip down to 52.0, which sent the dollar falling initially on talk the Federal Reserve will jolt the economy and spur recovery via stimulus measures, which weaken the dollar as a side effect.
The data also sparked some demand for the dollar, as investors sold stocks and sought safe-harbor in the U.S. currency due to its liquidity and reliability.
The yen, also a safe-haven currency, saw demand as well.
On Monday, the Bank of Japan reported that its Tankan Manufacturing index rose to a seasonally adjusted -1 in the second quarter from -4 in the preceding quarter.
Analysts were forecasting the Tankan Manufacturing index to remain unchanged at -4.
The index measures sentiment among large Japanese manufacturers.
Official U.S. manufacturing data will release later Tuesday, which propped up the yen against the greenback early in Asian trading on fears government data will disappoint as well, albeit at times in choppy trading that sent the pair jumping in and out of positive territory.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.03% and trading at 124.81 and EUR/JPY up 0.08% and trading at 100.08.
In Asian trading on Tuesday, USD/JPY hit 79.52, up 0.01%, up from a session low of 79.41 and off a high of 79.54.
The pair was likely to find support at 79.31, the low from July 2, and resistance at 79.86, the high from July 2.
Manufacturing, once the bright spot in the U.S. economy earlier in the year, took a hit earlier.
The Institute for Supply Management reported that its index of manufacturing activity fell to 49.7 in June from 53.5 in May.
New orders dropped to 47.8 from 60.1, while the employment gauge fell to 56.6 from 56.9.
A reading above 50.0 indicates industry expansion, while below indicates contraction.
June's figure was the lowest reading since July 2009 and well below analyst forecasts for the index to slip down to 52.0, which sent the dollar falling initially on talk the Federal Reserve will jolt the economy and spur recovery via stimulus measures, which weaken the dollar as a side effect.
The data also sparked some demand for the dollar, as investors sold stocks and sought safe-harbor in the U.S. currency due to its liquidity and reliability.
The yen, also a safe-haven currency, saw demand as well.
On Monday, the Bank of Japan reported that its Tankan Manufacturing index rose to a seasonally adjusted -1 in the second quarter from -4 in the preceding quarter.
Analysts were forecasting the Tankan Manufacturing index to remain unchanged at -4.
The index measures sentiment among large Japanese manufacturers.
Official U.S. manufacturing data will release later Tuesday, which propped up the yen against the greenback early in Asian trading on fears government data will disappoint as well, albeit at times in choppy trading that sent the pair jumping in and out of positive territory.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.03% and trading at 124.81 and EUR/JPY up 0.08% and trading at 100.08.