Investing.com - The dollar firmed against the yen on Wednesday
after better-than-expected Chinese growth rates enticed investors
out of safe-haven positions in the Japanese currency.
In U.S. trading, USD/JPY was up 0.38% and trading at 102.30, up
from a session low of 101.81 and off a high of 102.37.
The pair was expected to test support at 101.33, Friday's low,
and resistance at 104.12, the high from April 4.
Data released earlier revealed that China's gross domestic
product expanded at an annual rate of 7.4% in the first three
months of 2014, slowing from 7.7% in the fourth quarter, but
beating expectations for a 7.3% reading, which softened the yen as
investors ditched the safe-harbor currency to take on risk.
Meanwhile in the U.S., industrial production rose 0.7% in March
from February, beating expectations for a 0.5% reading, which
supported the dollar, though soft U.S. housing data watered down
the greenback's advance.
The Commerce Department reported earlier that housing starts
rose 2.8% in March to 946,000, missing analyst forecasts for a 6.4%
increase to 973,000 units.
Separately, building permits, an indicator of future demand for
housing, fell 2.4% in March to 990,000, defying market expectations
for a 0.6% increase.
The yen, meanwhile, was down against the euro and down against
the pound, with EUR/JPY up 0.47% at 141.45, and GBP/JPY trading
down 0.82% at 171.86.
On Thursday, the U.S. is to publish data on initial jobless
claims and a report on manufacturing activity in the Philadelphia
offers an extensive set of professional tools for the financial
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