Investing.com - The U.S. dollar was trading close to a one-month high against the yen on Wednesday, as Tuesday’s upbeat U.S. data lent support to the greenback, while comments by the Bank of Japan continued to weigh on the yen.
USD/JPY hit 78.94 during early European trade, the pair’s highest since July 18; the pair subsequently consolidated at 78.91, adding 0.22%.
The pair was likely to find support at 78.43, the low of July 20 and resistance at 79.27, the high of July 16.
The greenback gained ground after data on Tuesday showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.
Investors were eyeing the release of additional U.S. data later in the day, for further indications on the strength of the country’s economic recovery.
Meanwhile, the yen remained under pressure after the minutes of the Bank of Japan’s latest policy meeting showed that board members weren’t ruling out further easing measures to bolster growth.
Separately, sentiment remained mildly supported by expectations that recent evidence of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.
Data on Tuesday showed that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, bringing the annualized rate of contraction to 0.4%.
The yen was also lower against the euro with EUR/JPY rising 0.32%, to hit 97.35.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.
USD/JPY hit 78.94 during early European trade, the pair’s highest since July 18; the pair subsequently consolidated at 78.91, adding 0.22%.
The pair was likely to find support at 78.43, the low of July 20 and resistance at 79.27, the high of July 16.
The greenback gained ground after data on Tuesday showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.
Investors were eyeing the release of additional U.S. data later in the day, for further indications on the strength of the country’s economic recovery.
Meanwhile, the yen remained under pressure after the minutes of the Bank of Japan’s latest policy meeting showed that board members weren’t ruling out further easing measures to bolster growth.
Separately, sentiment remained mildly supported by expectations that recent evidence of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.
Data on Tuesday showed that the euro zone’s gross domestic product contracted by 0.2% in the three months to June, bringing the annualized rate of contraction to 0.4%.
The yen was also lower against the euro with EUR/JPY rising 0.32%, to hit 97.35.
Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.