Investing.com - The U.S. Dollar traded higher against the Japanese yen during Wednesday’s Asian session following the release of Japanese industrial production data.
In Asian trading Wednesday, USD/JPY rose 0.08% to 98.26. The pair is likely to find support at 96.66, the low of October 7 and resistance at 98.45.
Earlier Wednesday, the Ministry of Economy, Trade and Industry said that Japan’s industrial production rose 1.5% last month after falling 0.9% in August. Economists expected a September increase of 1.8%.
The industrial production data came a day after Japan’s Statistic Bureau said the country’s unemployment rate fell to 4% last month from 4.1% in August. Economists expected a reading of 4% for September.
In a separate report, the Statistics Bureau said household spending in the world’s third-largest economy rose 3.7% in September after falling 1.6% in August. Analysts expected a September increase of just 0.5%.
Traders will now turn their attention to the conclusion of the Federal Reserve meeting later Wednesday. Given the recent batch of disappointing U.S. economic, traders are betting the Fed will not make material alterations to its USD85 billion-per-month quantitative easing program.
Should the Fed even hint at tapering, the dollar could rally, forcing the yen lower in the process. Some Japanese bankers and policymakers have expressed concern U.S. monetary policy will stay loose for too long, forcing the yen higher and derailing the Japanese economic recovery.
The yen has traded modestly higher against the dollar over the past month, though many market observers expect the Japanese currency will weaken into year-end.
Elsewhere, AUD/JPY fell 0.09% to 93.01 while EUR/JPY inched down 0.04% to 134.93.
In Asian trading Wednesday, USD/JPY rose 0.08% to 98.26. The pair is likely to find support at 96.66, the low of October 7 and resistance at 98.45.
Earlier Wednesday, the Ministry of Economy, Trade and Industry said that Japan’s industrial production rose 1.5% last month after falling 0.9% in August. Economists expected a September increase of 1.8%.
The industrial production data came a day after Japan’s Statistic Bureau said the country’s unemployment rate fell to 4% last month from 4.1% in August. Economists expected a reading of 4% for September.
In a separate report, the Statistics Bureau said household spending in the world’s third-largest economy rose 3.7% in September after falling 1.6% in August. Analysts expected a September increase of just 0.5%.
Traders will now turn their attention to the conclusion of the Federal Reserve meeting later Wednesday. Given the recent batch of disappointing U.S. economic, traders are betting the Fed will not make material alterations to its USD85 billion-per-month quantitative easing program.
Should the Fed even hint at tapering, the dollar could rally, forcing the yen lower in the process. Some Japanese bankers and policymakers have expressed concern U.S. monetary policy will stay loose for too long, forcing the yen higher and derailing the Japanese economic recovery.
The yen has traded modestly higher against the dollar over the past month, though many market observers expect the Japanese currency will weaken into year-end.
Elsewhere, AUD/JPY fell 0.09% to 93.01 while EUR/JPY inched down 0.04% to 134.93.