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Forex - USD/JPY slightly lower after Tankan reports

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Investing.com - The U.S. dollar is trading lower against the Japanese yen during Monday's Asian session following the release of the Tankan large non-manufacturing index data and the Tankan manufacturing index.

In Asian trading Monday, USD/JPY is lower by 0.29% at 93.96. The pair was likely to find support at 93.88, Thursday's low, and resistance at 94.91, Wednesday's high.

Earlier today, Bank of Japan said that Tankan Manufacturing index rose to a seasonally adjusted -8 in the first quarter from -12 in the fourth quarter. Analysts expected a first-quarter reading of -7.

In another report, Bank of Japan said that Japan's Tankan large non-manufacturing index rose to a seasonally adjusted 6 in March from 4 in February. Analysts expected a March reading of 8.

Buyers were also stepping into the yen as an alternative safe-haven play to the dollar as Cyprus fears are once again seen spooking global markets.

EUR/JPY fell 0.67% to 119.99 after Cypriot President Nicos Anastasiades agreed to punitive losses for the Bank of Cyprus's larger depositors in order to land EUR10 billion in aid to keep his country from going bankrupt. Cyprus was forced to agree to the levies against large Bank of Cyrpus depositors after failing to secure financial assistance from Russia.

Under the terms of the new plan, Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized.

Meanwhile, AUD/JPY slipped 0.56% to 97.64 while NZD/JPY is off 0.53% at 78.48. The Australian and New Zealand dollars are seen weaker after after China reported March PMI of 50.9, slightly below analysts' estimates calling for 51.2. Readings above 50 indicate expansion.

China is the largest trading partner for both Australia and New Zealand.

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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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