Investing.com - The dollar slid against the yen on Thursday after tensions between Russia and Ukraine flared anew and sent investors chasing safe-haven yen positions, offsetting upbeat durable goods orders numbers out of the U.S.
In U.S. trading, USD/JPY was down 0.17% and trading at 102.36, up from a session low of 102.09 and off a high of 102.65.
The pair was expected to test support at 101.87, the low from April 17, and resistance at 102.73, Tuesday's high.
Ukraine military forces killed five separatists earlier, while Russian President Vladimir Putin warned Kiev against stepping up its offensive against the rebels.
Geopolitical tensions eclipsed overall positive U.S. data and sent investors avoiding the greenback on fears the U.S. may be dragged into the standoff.
The Commerce Department reported earlier that U.S. orders for durable goods rose 2.6% in March, beating expectations for a 2% gain.
Core durable goods orders, which exclude volatile transportation items, rose 2% last month, far outpacing forecasts for a 0.6% gain.
Separately, the Labor Department said the number of individuals who filed for unemployment assistance in the U.S. in the week ending April 19 rose by 24,000 to 329,000. Analysts had expected an increase of 5,000.
Despite the increase, underlying trends still point to recovery in the labor market, giving investors room to shrug off the data and gave the dollar some support against the yen.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.12% at 141.52, and GBP/JPY trading down 0.09% at 171.93.
In Europe earlier, ECB President Mario Draghi reiterated his stance that a strengthening euro could trigger further monetary easing, which capped the euro's gains.
Speaking at a conference in Amsterdam, Draghi said the euro exchange rate is an "increasingly important factor" in monetary policy. The exchange rate is not a policy target in itself, but the bank’s monetary policy stance could be affected by a continued appreciation in the currency, Draghi added.
He also said the ECB could launch a "broad-based" asset purchase program if the medium-term inflation outlook deteriorated.
Elsewhere in Europe, German research institute Ifo reported that its business climate index rose to a two-month high of 111.2 for April from 110.7 in March, beating expectations for a 110.5 reading.