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USD/JPY gains on upbeat U.S. sentiment, wholesale pricing data

Published 04/11/2014, 12:14 PM
Updated 04/11/2014, 12:16 PM
Dollar firms against yen on positive U.S. indicators
USD/JPY
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Investing.com - The dollar firmed against the yen on Friday after data on U.S. consumer sentiment and wholesale prices beat expectations.

In U.S. trading, USD/JPY was up 0.05% and trading at 101.59, up from a session low of 101.33 and off a high of 101.86.

The pair was expected to test support at 101.33, the session low, and resistance at 104.12, the high from April 4.

In the U.S., upbeat economic indicators supported the greenback.

The preliminary Thomson Reuters/University of Michigan April consumer sentiment index came in at 82.6, beating expectations for a 81.0 reading.

Separately, official data showed that the U.S. producer price index rose 0.5% in March, exceeding expectations for a 0.1% gain, after a 0.1% fall the previous month.

Core producer price inflation, which is stripped of volatile food, energy and trade items, rose 0.6% in March, beating expectations for a 0.2% rise after a 0.2% decline in February.

Still, the greenback's gains were limited due to growing market consensus that the Federal Reserve is nowhere close to tightening policy due to soft inflation rates and slackness in the labor market.

The yen, meanwhile, was down against the euro and up against the pound, with EUR/JPY up 0.13% at 141.18, and GBP/JPY trading down 0.25% at 169.98.

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