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Forex - USD/JPY pares gains after poor U.S. jobs, durables data

Published 01/27/2011, 08:59 AM
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Investing.com – The U.S. dollar pared gains against the yen on Thursday, following the release of worse-than-expected U.S. data on initial jobless claims and durable goods orders.

USD/JPY retreated from 83.2, the pair’s highest since January 12, to hit 82.81 during European afternoon trade, gaining 0.8%.

The pair was likely to find support at 82.01, the day’s low and resistance at 83.45, the high of January 12.

The U.S. Department of Labor said that the number of people who filed for unemployment assistance in the U.S. last week rose more-than-expected, climbing to a seasonally adjusted 454K, much more than the expected increase to 408K.

A separate report showed that U.S. core durable goods orders rose less-than-expected in December, increasing by a seasonally adjusted 0.5%, less than the forecast 0.6% increase.

Durable goods orders, which include transportation items, tumbled unexpectedly in December, dropping by a seasonally adjusted 2.5%, after falling by a revised 0.1% in November. Analysts had expected durable goods orders to rise by 1.5%.

Later in the day, the U.S. was to publish a report on pending home sales.

Meanwhile, the dollar was down against the euro, with EUR/USD rising 0.23% to hit 1.3743.

Earlier Thursday, ratings agency Standard & Poor cut Japan’s sovereign credit rating to AA- from AA, citing concerns over the country’s high fiscal deficits.

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