The Japanese yen climbed against its major counterparts in the early European session on Thursday amid risk aversion, as investors remained cautious in the wake of Brexit uncertainty and ongoing budget standoff between Italy and Brussels.

Italy's Deputy Prime Minister Matteo Salvini remarked that the government will not alter the budget plan and the proposed unwinding of the existing pension system despite a rejection by the EU Commission.

Oil prices dipped after the EIA reported a moderate build in crude oil inventories and U.S President Donald Trump praised Saudi Arabia for helping to lower oil prices.

Market participants also looked ahead to a crucial meeting between Chinese President Xi Jinping and his U.S. counterpart Donald Trump at a G20 meeting in Argentina later this month.

Data from the Ministry of Internal Affairs and Communications showed that Japan consumer prices rose 1.4 percent on year in October. That was in line with expectations and up from 1.2 percent in September.

Core consumer prices, which exclude volatile food prices, advanced an annual 1.0 percent.

The yen edged up to 112.90 against the greenback, off its early 6-day low of 113.21. The next possible resistance for the yen is seen around the 111.00 area.

The yen recovered to 128.70 against the euro and 113.57 against the franc, from its previous lows of 129.00 and 113.84,respectively. The yen is poised to find resistance around 127.00 against the euro and 112.00 against the franc.

The Japanese currency reversed from an early low of 144.67 against the pound, rising to 144.26. The yen is seen finding resistance around the 142.00 level.

The yen appreciated to 81.70 against the aussie, 76.66 against the kiwi and 85.25 against the loonie, coming off from its early lows of 82.23 and 77.32, and a 2-day low of 85.51,respectively. On the upside, 80.5, 75.00 and 84.00 are likely seen as the next resistance levels for the yen against the aussie, the kiwi and the loonie, respectively.

Looking ahead, the European Central Bank will release minutes from the October 24-25 meeting at 7:30 am ET.

The Bank of Canada Senior Deputy Governor Carolyn Wilkins will participate in a panel discussion titled "2-Balancing act: How governments can manage systemic risks and maintain healthy housing markets" at the Canada Mortgage and Housing Corporation in Ottawa at 9:45 am ET.

At 10:00 am ET, Eurozone flash consumer sentiment index for November will be out.

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