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Forex - USD/JPY tumbles to 6-day low after U.S. jobless claims rise

Published 01/13/2011, 08:51 AM
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Investing.com – The U.S. dollar erased early gains against the yen on Thursday, falling to a six day low after official data showed that the number of people who filed for unemployment assistance in the U.S. last week rose unexpectedly.

USD/JPY retreated from 83.15, the daily high to hit 82.56 during European afternoon trade, tumbling 0.53%.

The pair was likely to find support at 81.87, the low of January 5 and resistance at 83.15, the days high.

The Department of Labor said that said initial jobless claims rose to 445K in the week ending January 8, after rising to a revised 410K in the preceding week.

Analysts had expected initial jobless claims to fall to 404K last week.

A separate report by the department said that U.S. producer price inflation rose more-than-expected in December while core PPI, which excludes food and energy costs, rose in line with expectations.

Also Thursday, official data showed that the U.S. trade deficit narrowed unexpectedly in November.

The dollar was also lower against the euro, with EUR/USD jumping 1.03% to hit 1.3264.

Earlier in the day, official data showed that Japanese machinery orders unexpectedly fell in November, down for the third consecutive month.

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