Yen Falls Amid Risk Appetite
January 04 2018 - 9:10PM
RTTF2
The Japanese yen slipped against its key counterparts in the
Asian session on Friday amid rising risk appetite, as Asian markets
rose following strong gains overnight on Wall Street and higher
commodity prices.
Investors await U.S. jobs data later in the day for evidence of
economic growth in the world's largest economy.
The U.S. Labor Department's report is expected to show an
increase of about 190,000 jobs in December following the jump of
228,000 jobs in November. The unemployment rate is expected to hold
at 4.1 percent.
The latest survey from Nikkei showed that Japan's services
sector continued to expand in December, although at a marginally
slower rate, with a Services PMI score of 51.1.
That's down from 51.2 in November, although it remains above the
boom-or-bust line of 50 that separates expansion from
contraction.
Data from the Bank of Japan showed that Japan's monetary base
rose 11.2 percent on year in December, coming in at 474.126 billion
yen.
That follows the 13.2 percent annual jump in November.
The yen dropped on Thursday, as sentiment lifted up on upbeat
data across the globe and higher oil prices. It dropped 0.7 percent
against the euro, 0.2 percent against the greenback and 0.5 percent
each against the franc and the pound.
The yen dropped to 80.89 against the kiwi, its lowest since
October 19, 2017. If the yen weakens further, 82.00 is possibly
seen as its next support level.
The yen hovered around a 2-1/2-month low of 88.75 against the
aussie, compared to 88.63 hit late New York Thursday. Continuation
of the yen's downtrend may see it challenging support around the
89.5 region.
Data from the Australian Bureau of Statistics showed that
Australia logged a seasonally adjusted merchandise trade deficit of
A$628 million in November.
That was well shy of forecasts for a surplus of A$550 million
following the A$105 million surplus in October.
Reversing from an early high of 90.23 against the loonie, the
yen weakened to a 2-1/2-month low of 90.48. The next possible
support for the yen is seen around the 92.00 mark.
The yen slipped to an 8-day low of 113.03 versus the greenback
and more than 2-year low of 136.47 against the euro, off its early
highs of 112.72 and 135.98, respectively. On the downside, 114.00
and 138.00 are likely seen as the next support levels for the yen
against the greenback and the euro, respectively.
The yen weakened to 153.45 against the pound, a level unseen
since June 20, 2016. Further downtrend may see the yen challenging
support around the 155.00 region.
Data from the the British Retail Consortium showed that the U.K.
shop prices fell 0.6 percent on year in December.
That missed expectations for a flat reading following the 0.1
percent contraction in November.
The yen that closed Thursday's deals at 115.70 against the franc
slipped to a 3-month low of 116.03. The yen is seen finding support
around the 117.00 region.
Looking ahead, Eurozone PPI for November and advanced CPI for
December are due in the European session.
U.S. trade data and factory orders for November, non farm
payrolls data and ISM non-manufacturing composite index for
December, as well as Canada jobs data and Ivey PMI for December are
set for release in the New York session.
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From Apr 2024 to May 2024
US Dollar vs Yen (FX:USDJPY)
Forex Chart
From May 2023 to May 2024