Investing.com - The U.S. dollar was higher against the yen on Friday, as market sentiment was boosted by news that European leaders agreed on new measures to tackle the region's financial troubles, while renewed expectations for fresh easing measures by Japan weighed on the yen.
USD/JPY hit 79.72 during European morning trade, the pair's highest since June 27; the pair subsequently consolidated at 79.67, rising 0.28%.
The pair was likely to find support at 78.79, the low of June 20 and resistance at 80.33, the high of June 21.
Market sentiment strengthened after euro zone leaders agreed at a summit in Brussels that the region's rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules to adopt extra austerity measures or economic reforms.
The leaders also agreed that the bloc's future permanent bailout fund, the European Stability Mechanism (ESM), would be able to lend directly to recapitalize banks without increasing a country's budget deficit.
In Japan, preliminary data showed that industrial production fell more-than-expected in May, tumbling 3.1% after a 0.2% decline the previous month. Analysts had expected industraial production to fall 2,7% the previous month.
A separate report showed that Japan manufacturing activity shrank in June for the first time in seven months. The Markit/JMMA Japan manufacturing purchasing managers index fell to a seasonally adjusted 49.9 in June from 50.7 the previous month.
The dismal data added to expectations that the Bank of Japan will move to implement fresh monetary easing measures in order to shore up growth.
Meanwhile, official data also showed that Japanese household spending rose 4% in May, beating expectations for a 2.5% rise and following a 2.6% increase the previous month.
Elsewhere, the yen was sharply lower against the euro with EUR/JPY jumping 1.40%, to hit 100.25.
Later in the day, the U.S. was to publish data on personal spending and on manufacturing activity in Chicago, followed by a revised report on consumer sentiment.
USD/JPY hit 79.72 during European morning trade, the pair's highest since June 27; the pair subsequently consolidated at 79.67, rising 0.28%.
The pair was likely to find support at 78.79, the low of June 20 and resistance at 80.33, the high of June 21.
Market sentiment strengthened after euro zone leaders agreed at a summit in Brussels that the region's rescue funds could be used to stabilise bond markets without forcing countries that comply with European Union budget rules to adopt extra austerity measures or economic reforms.
The leaders also agreed that the bloc's future permanent bailout fund, the European Stability Mechanism (ESM), would be able to lend directly to recapitalize banks without increasing a country's budget deficit.
In Japan, preliminary data showed that industrial production fell more-than-expected in May, tumbling 3.1% after a 0.2% decline the previous month. Analysts had expected industraial production to fall 2,7% the previous month.
A separate report showed that Japan manufacturing activity shrank in June for the first time in seven months. The Markit/JMMA Japan manufacturing purchasing managers index fell to a seasonally adjusted 49.9 in June from 50.7 the previous month.
The dismal data added to expectations that the Bank of Japan will move to implement fresh monetary easing measures in order to shore up growth.
Meanwhile, official data also showed that Japanese household spending rose 4% in May, beating expectations for a 2.5% rise and following a 2.6% increase the previous month.
Elsewhere, the yen was sharply lower against the euro with EUR/JPY jumping 1.40%, to hit 100.25.
Later in the day, the U.S. was to publish data on personal spending and on manufacturing activity in Chicago, followed by a revised report on consumer sentiment.