Yen Advances Against Majors
Wednesday in Asia, the yen edged up against its major counterparts as a drop in Tokyo stocks boosted demand for the safe-haven Japanese currency. The yen thus recovered from a 2-day low against the pound.
After a flat start and a subsequent upward move, the Japanese stock market pared gains and fell into the negative zone today due to lack of support at higher levels. Concerns over a series of equity financing plans by some major Japanese firms appear to have made a section of investors wary of holding stocks at higher levels.
The benchmark Nikkei 225 index is currently down 80.63 points or 0.83% at 9,649.30.
The yen strengthened against the dollar in Asian deals on Wednesday. As of now, the yen is worth 89.10 per dollar with 88.8 seen as the near term resistance level. The dollar-yen pair was worth 89.32 at yesterday’s close.
The yen rose against the pound after touching a 2-day low of 150.39 at 7:20 pm ET Tuesday. Currently, the pound-yen pair is worth 149.76, compared to yesterday’s close of 150.17. The near term resistance for the yen is seen at 149.45.
The yen climbed to 132.60 against the euro and 87.75 against the franc in Asian trading on Wednesday. If the yen gains further, it may target 132.45 against the euro and 87.64 against the franc. The euro-yen pair closed trading at 132.83 and the franc-yen pair at 87.91 on Tuesday.
Looking ahead, Japan’s October final machine tool orders report is due at 1:00 am ET.
In the European session, the Euro-zone current account and construction output reports for September, U.K. CBI industrial trends survey data for October and the BoE minutes are expected.
Across the Atlantic, the U.S. CPI, housing starts and building permits- all for the month of October have been slated for release in the North American session.
