Thursday, June 7, 2007

Japanese Yen Down Across The Board In Tokyo Session On Thursday, Thursday, June 07, 2007 1:42:43 AM

The Japanese yen showed strength in the late New York deals on Wednesday, but the pairs gave back the gains in the early Tokyo session.

The yen weakened against the major currencies amid release of the official reserve assets data, which showed a decline in May.

Also in the session, the yen weakened heavily against the N.Z. dollar and the Aussie driven by the unexpected rate hike by the Reserve Bank of New Zealand and a strong Australian jobless data respectively.

Investors now turn toward the Swiss employment data and the Bank of England rate decision expected in the European session on Thursday. It is widely expected for the BoE to hold the benchmark interest rate at 5.5% this time.

The Japanese yen strengthened against the U.S dollar during late New York trading on Wednesday, but the pair reversed its trend as next day`s Tokyo session began. The yen was weakened by the Japanese official reserve assets data and moving from 120.77, the pair has lately fetched 121.25. Largely, the pair has been trending higher from last Tuesday and 120.5 will likely be an upside target for the yen in near term.

Against the Euro, the yen strengthened during late New York trading on Wednesday. As Thursday`s deals began in Tokyo, the pair changed its direction and moving from 163.06, it has fetched 163.76, lately. The yen likely declined following a weak reserve assets data for Japan, which struck the market at 7:50 pm ET. Largely, the pair has been ticking up since Tuesday, and if it strengthens further, 162.4 will be a likely level of resistance in near term.

The Japanese currency saw strength against its British counterpart during late New York trading on Wednesday, but the pair weakened in the Tokyo session on Thursday influenced by a weak Japanese economic data. Falling from 240.63, the pair traded at as high as 241.69. Lately, as the market is approaching the European session, which is going to see the policy announcement by the Bank of England, the pair has picked up a few points. Largely, the pair has been trending upwards from early this week with a likely near term upside target around 239.9.

Versus the Swiss franc, the yen moved upwards during late New York trading on Wednesday, but the pair gave back the gains through the Tokyo session on Thursday. Falling from 99.27, the pair equaled as high as 99.625 by about 11:10 pm ET on Wednesday. Thereafter, the pair held steady as the markets waited for the Swiss May unemployment data. Broadly speaking, the pair has started an upward trend on Wednesday and if this could reverse the losses it suffered from May 11, a likely near term level of resistance will be one around 98.06.
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