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Forex - USD/JPY hits 3-week high as U.S. Treasury yields support

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Forex Pros - The U.S. dollar eased up to a three-week high against the yen on Thursday, as U.S. Treasury yields rose after minutes from the Federal Reserve's April meeting sparked speculation that a rate hike could come sooner then previously expected.

USD/JPY hit 81.81 during early European trade, the pair's highest since April 28; the pair subsequently consolidated at 81.75, easing up 0.12%.

The pair was likely to find support at 80.93, Wednesday's low and resistance at 82.27, the high of April 28.

The Fed minutes showed that some policymakers saw a rise in inflation risks and most preferred to raise interest rates before selling assets when the time came to tighten policy.

However the minutes emphasized that this did not indicate the Fed was ready to start tightening policy any time soon.

The yen was largely unchanged after official data showed that Japan's economy contracted at an annualized 3.7% in the first quarter due to the effects of the March 11 earthquake and tsunami, more than the annualized 2.0% drop expected.

The yen was also lower against the euro, with EUR/JPY easing up 0.13% to hit 116.52.

Later in the day, the U.S. was to publish its weekly report on initial jobless claims as well as industry data on existing home sales and official data on manufacturing activity in Philadelphia.

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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.


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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