The Japanese yen continued to be strong against the other major currencies in the Asian session on Thursday after data showed that the Japan’s industrial output unexpectedly rose in September.
Preliminary data released by Japan’s Ministry of Economy, Trade and Industry showed that industrial production in Japan was up a seasonally adjusted 1.0 percent on month in September. That beat forecasts for a decline of 0.5 percent following the 1.2 percent contraction in August.
On a yearly basis, industrial production dipped 0.9 percent, also beating expectations for a decline of 2.6 percent following the 0.4 percent decline in the previous month.
The data dampened bets that the Bank of Japan will expand stimulus at Friday’s meeting.
Meanwhile, Asian shares rose after the U.S. Federal Reserve left interest rates unchanged overnight but kept the door open to a possible interest rate rise in December.
“In determining whether it will be appropriate to raise the target range at its next meeting, the committee will assess progress – both realized and expected – toward its objectives of maximum employment and 2 percent inflation,” the Fed said.
Wednesday, the yen rose 0.64 percent against the euro, 0.28 percent against the pound, 0.52 percent against the greenback and 0.27 percent against the franc.
In the Asian trading, the yen rose to more than a 7-month high of 121.21 against the Swiss franc and nearly a 6-month high of 131.58 against the euro, from yesterday’s closing quotes of 121.76 and 132.23, respectively. If the yen extends its uptrend, it is likely to find resistance around 120.00 against the franc and 129.00 against the euro.
The yen advanced to 184.11 against the pound and 120.59 against the U.S. dollar, from yesterday’s closing quotes of 184.81 and 121.07, respectively. The yen is likely to find resistance around 181.00 against the pound and 118.00 against the greenback.
Against the Australian, the New Zealand and the Canadian dollars, the yen edged up to 85.66, 80.44 and 91.29 from yesterday’s closing quotes of 86.13, 81.11 and 91.79, respectively. On the upside, 82.00 against the aussie, 75.00 against the kiwi and 89.00 against the loonie are seen as the next resistance levels for the yen.
Looking ahead, U.K. Nationwide house price index for October and mortgage approvals for September and German unemployment rate and Eurozone economic confidence index, both for October, are due to be released later in the day.
In the New York session, U.S. weekly jobless claims for the week ended October 24, the first estimate third quarter U.S. GDP data, pending home sales data for September, Canada industrial product and raw materials price indexes for September and preliminary German CPI data for October are slated for release.
At 9:10 am ET, Federal Reserve Bank of Atlanta President Dennis Lockhart will deliver opening remarks at the Workforce Development Panel Discussion, in Washington DC.
At 10:00 am ET, European Central Bank Vice President Vitor Constancio is expected to speak on “The Role of Stress Testing in the European Central Bank’s Policy Framework” at a conference on “Stress Testing and Macro-prudential Regulation: A Transatlantic Assessment”, in London.
The material has been provided by InstaForex Company – www.instaforex.com