Yen Falls After Japan CPI Data
25 April 2014 - 12:35PM
RTTF2
The Japanese yen slipped against other major currencies in Asian
deals on Friday, as the country's consumer price index rose in line
with forecasts in March, signaling that the policy makers' attempt
to defeat deflation are working.
Nationwide consumer prices in Japan were up 1.6 percent on year
in March, the Ministry of Internal Affairs and Communications said
today - in line with expectations and up from 1.5 percent in
February.
Core CPI, which strips out the volatile costs of food, added an
annual 1.3 percent - unchanged from the previous month but shy of
forecasts for 1.4 percent.
Overall inflation for the Tokyo region spiked 2.9 percent on
year in April - below expectations for 3.0 percent but up sharply
from 1.3 percent in March.
Escalating tensions in Ukraine hurt investor sentiment in Asia.
On Thursday, Ukraine troops killed five rebels, while Russia
commenced military drills near the border, raising anxiety in the
region.
The yen slipped to 102.51 against the greenback, reversing from
an early high of 102.18. The next possible downside target for the
yen is seen around the 103.00 region.
The yen that closed yesterday's deals at 116.06 against the
franc declined to a 2-day low of 116.21. If the yen extends slide,
117.00 is seen as the next possible downside target level.
The yen declined to 141.76 against the European currency,
retreating from a high of 141.35 hit in previous deals. On the
downside, 142.6 is seen as the next support level for the yen.
The yen reached a 2-day low of 172.27 against the pound, down
from yesterday's closing quote of 171.91. An extension of downtrend
may lead the yen to support at the 173.6 region.
The yen reached as low as 87.76 against the New Zealand dollar,
92.97 against the loonie and 94.95 against the aussie. The yen is
likely to find support around 88.5 against the kiwi, 93.5 against
the loonie and 95.7 against the aussie.
Looking ahead, U.K. retail sales and mortgage approvals for
March are due in the European session.
The U.S. flash services PMI and Reuters/University of Michigan's
final consumer sentiment index for April are set for release in the
New York session.
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