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USD/JPY dips as stock markets fall, U.S. indicators support

Published 01/31/2014, 01:53 PM
Updated 01/31/2014, 01:54 PM
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Investing.com - The dollar slipped against the yen on Friday as global stock markets continued to fall on fears emerging markets are cooling, though solid U.S. economic indicators cushioned the greenback's losses.

In U.S. trading, USD/JPY was down 0.43% and trading at 102.28, up from a session low of 101.96 and off a high of 102.94.

The pair was expected to test support at 101.84, Wednesday's low, and resistance at 103.44, Tuesday's high.

Concerns the emerging markets may be cooling, as evidenced by soft Chinese manufacturing data, have weakened emerging-market currencies and roiled stock markets worldwide.

Then yen has served as the safe-haven currency of choice during the turbulence, and Japanese data continued to support the currency on Friday.

According to figures released by Ministry of Economy, Trade and Industry, Japan’s industrial production in December rose by 1.1% against the expected rise of 1.2% but up from a previous fall of 0.1%.

Also in Japan, the Statistics Bureau reported that country's headline and core consumer price indices both remained unchanged at 0.7%, in line with expectations.

The dollar, however, saw some support from solid economic indicators.

The Thomson Reuters/University of Michigan final index of sentiment came in at 81.2 in January, beating expectations for a 81.0 reading.

Also in the U.S. official data revealed consumer spending rose 0.4% in December, beating expectations for a 0.2% reading though personal income came in unchanged, missing expectations for a 0.0% gain.

The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.75% at 138.20, and GBP/JPY trading down 0.56% at 168.39.




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