Investing.com - The Japanese yen strengthened against the U.S. dollar in Asian trade Thursday as dealers await the outcome of negotiations in the U.S. to raise the nation’s debt ceiling before an August 2 deadline.
In mid-day trade USD/JPY was lower by 0.04% to hit 77.86 after reaching a high of 77.94.
The pair was likely to find support at 77.58, today’s low, and resistance at 78.72, last Friday’s high.
Earlier in the day, U.S. Census Bureau figures showed U.S. core durable goods orders rose less than expected, gaining 0.1% last month, up from 0.7% the previous month. Analysts had expected a 0.5% rise for the period.
But a report from the Japanese Ministry of Economy Trade and Industry gave a lift to yen as Japanese retail sales picked up by 1.1% in the month, far outpacing market expectations of a 0.5% drop.
Tokyo stocks retreated while market players weigh the implications of a possible debt rating downgrade in the U.S. if an agreement is not reached in time to raise its debt limit.
The Nikkei 225 average fell 1% in the morning session, while the broader-based Topix Index surrendered 0.84%..
Meanwhile, the yen picked up ground against the euro but dropped against the British poind with EUR/JPY down 0.33% to hit 11.66 and GBP/JPY higher by 0.19% to hit 127.09.
Tokyo dealers were looking to Thursday’s release from the U.S. Labor Department on jobless claims for the week.
In mid-day trade USD/JPY was lower by 0.04% to hit 77.86 after reaching a high of 77.94.
The pair was likely to find support at 77.58, today’s low, and resistance at 78.72, last Friday’s high.
Earlier in the day, U.S. Census Bureau figures showed U.S. core durable goods orders rose less than expected, gaining 0.1% last month, up from 0.7% the previous month. Analysts had expected a 0.5% rise for the period.
But a report from the Japanese Ministry of Economy Trade and Industry gave a lift to yen as Japanese retail sales picked up by 1.1% in the month, far outpacing market expectations of a 0.5% drop.
Tokyo stocks retreated while market players weigh the implications of a possible debt rating downgrade in the U.S. if an agreement is not reached in time to raise its debt limit.
The Nikkei 225 average fell 1% in the morning session, while the broader-based Topix Index surrendered 0.84%..
Meanwhile, the yen picked up ground against the euro but dropped against the British poind with EUR/JPY down 0.33% to hit 11.66 and GBP/JPY higher by 0.19% to hit 127.09.
Tokyo dealers were looking to Thursday’s release from the U.S. Labor Department on jobless claims for the week.