Japanese Yen Falls Amid Rising Risk Appetite
The Japanese yen lost ground against its major counterparts in
the Asian session on Friday, as most Asian stocks rose, following
an overnight rally on Wall Street led by strong earnings results
and positive economic data.
Overnight data showed that U.S. jobless claims fell more than
expected last week to their lowest level since March 2020.
U.S. producer prices rose at a moderate pace in September as
service costs cooled amid subdued demand.
U.S. President Joe Biden signed the legislation raising the debt
limit to $28.9 trillion, avoiding the risk of a default on October
The short-term extension would grant the U.S. Treasury capacity
to issue debt to fund government operations through early
Data from the Ministry of Economy, Trade and Industry showed
that Japan's tertiary activity declined for the second straight
month in August.
The tertiary activity index fell 1.7 percent month-on-month in
August, following a 0.6 percent decrease in July.
The yen depreciated to near a 3-year low of 114.17 against the
greenback and near a 4-month low of 132.49 against the euro, down
from its previous highs of 113.62 and 131.78, respectively. The yen
may challenge support around 116.00 against the greenback and
134.00 against the euro.
The yen dropped to a 5-1/2-year low of 123.68 against the franc
and a 3-1/2-year low 156.15 against the pound, after rising to
122.94 and 155.36, respectively in early trades. On the downside,
125.00 and 160.00 are possibly seen as its next support levels
against the franc and the pound, respectively.
The yen touched a 4-month low of 84.76 against the aussie,
3-1/2-year low of 80.56 against the kiwi and a 5-1/2-year low of
92.43 against the loonie, following its prior highs of 84.21, 79.87
and 91.78, respectively. The yen is poised to challenge support
around 86.00 against the aussie, 82.00 against the kiwi and 94.00
against the loonie.
Looking ahead, Eurozone trade data for August is due in the
Canada wholesale sales for August, U.S. retail sales and import
and export prices for September, business inventories data for
August, New York Fed's empire manufacturing survey and University
of Michigan's preliminary consumer sentiment index for October will
be out in the New York session.
Euro vs Yen (FX:EURJPY)
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Euro vs Yen (FX:EURJPY)
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