Dollar surges against yen after disappointing Japan data

ForexNewsNow | Published on July 8, 2010 at 11:36 am

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NEW YORK (Forex News Now) – The dollar surged against the yen on Thursday, hitting a 6-day high, in the wake of disappointing economic data from Japan and an upbeat report on U.S. jobless claims.

In U.S. afternoon currency trading, USD/JPY traded at 88.34, up 0.72 percent on the day, after retreating slightly from 88.64, the currency pair’s highest since June 30.

A survey by Japan’s Cabinet Office survey showed earlier in the day that the country’s “economy watchers” service sector sentiment index fell unexpectedly in June for the second straight month.

The survey – which is of workers such as hotel workers, restaurant staff and taxi drivers – fell to 47.5 during the month, from 47.7 in May. Global forex analysts had expected a reading 48.3, two major financial news outlets reported.

According to forex analysis, USD/JPY is likely to touch immediate support around the daily low, 87.66, and encounter resistance around the high of June 30, 88.76.

Also Thursday, U.S. Labor Department data showed earlier that the number of workers filing new claims for unemployment benefits last week fell at a faster rate than forecast last week.

The yen also slumped versus the Aussie on Thursday: AUD/JPY traded at 77.06, up a huge 1.67 percent on the day.

 

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