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Forex - USD/JPY gains on weak consumer data, talk of BoJ easing

Published 01/18/2013, 01:47 PM
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Investing.com - The dollar gained against the yen on Friday after consumer sentiment figures came in weaker than expected in the U.S. earlier.

Talk the Bank of Japan may consider loosening policy next week sent the greenback firming against its Japanese counterpart.

In U.S. trading on Friday, USD/JPY was trading at 90.02, up 0.16%, up from a session low of 89.64 and off a high of 90.21.

The pair was likely to find support at 87.80, Wednesday's low, and resistance at 90.21, the earlier high.

The dollar saw safe-haven demand after earlier data revealed that The Thomson Reuters/University of Michigan's preliminary index of U.S. consumer sentiment fell to 71.3 in January — its lowest level since December 2011 —from 72.9 in December, disappointing expectations for an improvement to 75.0.

Investors opted to remain camped out in the safety of the dollar on fears the U.S. economy still faces stiff headwinds, as consumer spending drives about 70% of the country's total output.

Elsewhere, the Bank of Japan will hold a monetary policy next week, and talk the central bank will consider loosening policy in wake of repeated calls to do so by Prime Minister Shinzo Abe weakened the yen against the greenback on Friday.

The yen, meanwhile was up against the pound and up against the euro, with GBP/JPY down 0.58% and trading at 142.94 and EUR/JPY trading down 0.21% at 119.98.








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