Investing.com - The dollar strengthened against the yen on Friday after data showing that the U.S. economy added more jobs than forecast in November cemented the view that the Federal Reserve will soon start to roll back its stimulus program.
USD/JPY rose 1.04% to end Friday’s session at 102.85, near the six month high of 103.37 struck on Tuesday.
The pair is likely to find support at 101.61, Thursday’s low and resistance at 103.37.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
The yen remained under pressure amid expectations that the Bank of Japan will have to expand its stimulus program in the coming months, in order to meet its target of 2% inflation by 2015.
The euro ended the week at five year highs against the broadly weaker yen, with EUR/JPY settling at 140.95, the highest level since October 2008.
The single currency remained supported after European Central Bank President Mario Draghi indicated that further monetary easing by the bank is not imminent.
The ECB left rates on hold at record lows of 0.25% on Thursday, as widely expected. The bank raised its growth forecast for 2014 to 1.1% from 1.0% and predicted growth of 1.5% in 2015.
In the week ahead, the U.S. is to release what will be closely watched data on retail sales, while Japan is to release revised data on third quarter growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 9
Japan is to publish data on the current account, as well as revised data on third quarter economic growth.
Tuesday, December 10
Japan is to publish the BSI manufacturing index and a report on tertiary industry activity.
Wednesday, December 11
Japan is to release a report on core machinery orders, a leading indicator of production.
Thursday, December 12
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly report on initial jobless claims.
Friday, December 13
The U.S. is to round up the week with data on producer price inflation.
USD/JPY rose 1.04% to end Friday’s session at 102.85, near the six month high of 103.37 struck on Tuesday.
The pair is likely to find support at 101.61, Thursday’s low and resistance at 103.37.
The U.S. economy added 203,000 jobs in November, above expectations for jobs growth of 180,000, the Labor Department said. The unemployment rate fell to a five year low of 7.0% from 7.3% in October.
The report came one day after official data showed that the U.S. economy grew at an annual rate of 3.6% in the three months to September, well above the preliminary estimate for 2.6%.
The robust data raised the possibility that the Fed may start to scale back its USD85 billion-a-month asset purchase program as soon as its next monthly meeting on December 17 - 18.
The yen remained under pressure amid expectations that the Bank of Japan will have to expand its stimulus program in the coming months, in order to meet its target of 2% inflation by 2015.
The euro ended the week at five year highs against the broadly weaker yen, with EUR/JPY settling at 140.95, the highest level since October 2008.
The single currency remained supported after European Central Bank President Mario Draghi indicated that further monetary easing by the bank is not imminent.
The ECB left rates on hold at record lows of 0.25% on Thursday, as widely expected. The bank raised its growth forecast for 2014 to 1.1% from 1.0% and predicted growth of 1.5% in 2015.
In the week ahead, the U.S. is to release what will be closely watched data on retail sales, while Japan is to release revised data on third quarter growth.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, December 9
Japan is to publish data on the current account, as well as revised data on third quarter economic growth.
Tuesday, December 10
Japan is to publish the BSI manufacturing index and a report on tertiary industry activity.
Wednesday, December 11
Japan is to release a report on core machinery orders, a leading indicator of production.
Thursday, December 12
The U.S. is to produce data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity, as well as the weekly report on initial jobless claims.
Friday, December 13
The U.S. is to round up the week with data on producer price inflation.