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Forex - USD/JPY trims gains, pulling back from 6-day high

Published 06/13/2011, 03:41 AM
USD/JPY
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EUR/JPY
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Investing.com – The U.S. dollar trimmed gains against the yen on Monday, pulling back from a six-day high hit after official data showed an unexpected drop in Japanese core machinery orders.

USD/JPY pulled back from 80.68, the pair’s highest since June 3, to hit 80.37 during late Asian trade, up just 0.05% on the day.

The pair was likely to find support at 79.69, the low of June 8 and a five-week low and resistance at 81.31, the high of June 2.

Earlier in the day, the yen weakened after government data showed an unexpected drop in core machinery orders, in a sign the March earthquake and tsunami affected companies' ability to spend on equipment and facilities.
   
Japan’s Cabinet Office said orders slipped 0.2% in April from the previous year and 3.3% from March, disappointing expectations for a 1.2% monthly gain in April and a 2.0% year-on-year increase.

The yen was also lower against the euro, with EUR/JPY easing up 0.11% to hit 115.40.

Later Monday, European Central Bank President Jean-Claude Trichet was to speak at an event in London, while markets in France and Germany were to remain closed for national holidays.

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