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Forex - USD/JPY climbs in mid-day Asian trade

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Forexpros - The U.S. dollar extended gains against the Japanese yen in Asian trade Thursday, aided by better-than-expected labor figures and return to gains for Wall Street shares.

In early Asian trade USD/JPY hit 76.31, the pair's lowest since August 1; the pair subsequently consolidated at 76.88, addling 0.06%.

The pair was likely to find support at 76.31, the day's low, and resistance at 78.41, Monday's high.

The U.S. Labor Department on Thursday reported initial jobless claims dropped by 7,000 to a seasonally adjusted 395,000 last week. Market expectations were for the figure to rise to 401,000 for the week ending August 6.

It was the first time that U.S. jobless claims dipped below 400,000 since early April.

But any hopes of an extended period of U.S. job growth appeared unlikely after the Federal Reserve on Tuesday updated its forecast predicting that the nation's economic recovery would remain weak until 2013.

The Fed voted to extend its ultra-low interest rate policy until at least the middle of 2013.

Meanwhile the yen moved higher against both the euro and the British pound with EUR/JPY down 0.25% to hit 109.13, and GBP/JPY falling 0.07% to hit 124.65.

A report from Japan's Ministry of Economy Trade and Industry on monthly industrial production was due out later in the trading day Friday.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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