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Forex - USD/JPY pulls away from 4-years highs, but remains supported

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Investing.com - The U.S. dollar retreated against the yen on Friday, pulling away from four-year highs, after Thursday's upbeat jobless claims data, while radical monetary easing measures by the Bank of Japan continued to bolster demand for higher yielding assets.

USD/JPY hit 99.17 during European morning trade, the session low; the pair subsequently consolidated at 99.18, shedding 0.50%.

The pair was likely to find support at 98.30, the low of April 8 and resistance at 99.94, Thursday's high and a four-year high.

The Department of Labor on Thursday said the number of people who filed for unemployment assistance in the U.S. fell by 42,000 to a seasonally adjusted 346,000, compared to expectations for a decrease of 23,000.

The data eased concerns that the recovery in the labor market was losing momentum after U.S. nonfarm payrolls data for March came in far below expectations.

Meanwhile, the yen remained under pressure after BoJ Governor Haruhiko Kuroda said the central bank will not set a time limit for easing and will continue until it achieves sustainable inflation.

On Wednesday, Kuroda that the bank was ready to extend its monetary stimulus program beyond two years if necessary in order to reach its 2% inflation target.

Separately, government data earlier showed that tertiary industry activity in Japan rose 1.1% in February, after a 1.5% decline the previous month.

The yen was sharply higher against the euro with EUR/JPY declining 0.76%, to hit 129.57.

Later in the day, the U.S. was to release official data on retail sales, producer price inflation and business inventories, as well as preliminary data from the University of Michigan on consumer sentiment.

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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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