Yen Down Across The Board In Early Tokyo Trading Thursday, Thursday, June 21, 2007 3:50:41 AM

The Japanese currency weakened against its major counterparts during early Thursday deals in Tokyo following its upward trends, held in late New York trading on Wednesday.

The deals in Tokyo were likely influenced by the Japanese trade balance data for May. The merchandise trade surplus recorded growth for the seventh month in a row, but at a slower pace than expected by analysts.

Also, the U.S. currency, strengthened following the rise in its bond yields, is likely to have added to the losses in the yen-pairs.

Lately, towards the end of the Tokyo deals, the yen staged a fall against the dollar, but it moved against the euro and the franc. In the meantime, the pound has held its upward trend against the Japanese currency.

The gains posted by the yen against the U.S. dollar in late New York trading on Wednesday made the pair equal as high as 123.41 against its previous session close of 123.61. Thereafter, the pair weakened and is now trading near its recent multi-year low of 123.7.

Against the British pound, the yen traded higher in late New York trading on Wednesday and the pair moved to 245.83 from its previous session close of 246.39. The Asian Thursday deals witnessed the yen giving up against its British counterpart and of late, the pair has been trading near 246.3. As of now, immediate upside and downside targets for the pair are seen around 245.8 and 246.6.

The Japanese yen moved up against the Swiss franc during late New York trading on Wednesday, but after hitting as high as 99.65 by about 7:00 pm ET, the pair moved downwards. During much of Tokyo Thursday deals, the pair remained uncertain about direction but has staged a brief spike, lately. As of 3:20 am ET, the pair was worth 99.5, and if it moves further higher, 98.8 can be a key level of resistance in the near term.

After showing strength in late New York trading, the yen weakened against the euro in its early Asian Thursday deals. Moving from 165.32, the pair fetched as low as 165.72 towards the end of the Tokyo deals. However, lately, the Japanese unit has staged a brief spike against the common currency and the pair is now trading near 165.5. If the yen strengthens further, 165.3 can likely be a level of resistance in the near term.

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