USD/JPY on one-month highs

US dollar advanced to one-month high against the Japanese yen on positive manufacturing results in the United States, Japan and Euro zone, as this data chilled concerns over a global growth slow down.

USD/JPY pair reached a session high at 99.91 at 6:55 GMT, the highest point since June 5th, after which consolidation followed at 99.78. The cross was up by 0.10% for the day. Support was expected at July 1st low, 98.84, while resistance was to be encountered at June 5th high, 100.45.

The Institute for Supply Management (ISM) in the United States reported on Monday, that its manufacturing PMI rose to a reading of 50.9 in June from 49.0 in May. Experts had projected a value of 50.5. However, the employment indicator, one of the comprising elements of the index, shrank for the first time since September 2009.

At the same time, market players were looking ahead to Friday’s crucial US non-farm payrolls data, in pursuit of further clues on when the Federal Reserve Bank may decide to reduce its monthly asset purchases.

Meanwhile, a series of stronger than projected results, regarding activity in the sector of manufacturing in Japan, the Euro zone, the United Kingdom and the United States, were released on Monday, easing concerns over global economic growth slow down. Final Manufacturing PMI in the Euro region rose to 48.8 in June from 48.7 in May. Manufacturing CIPS in the UK surpassed the 50.0 level for another month in June, showing a value of 52.5. In Japan, the Tankan summary for Large Manufacturing Enterprises showed a positive value of 4 in June from -8 in the previous period, as the number of optimists exceeded the number of pessimists. Tankan summary for Large Non-manufacturing Enterprises stated even better results, +12 in June from +6 during the preceding period.

Elsewhere, the Japanese yen lowered versus the euro, as EUR/JPY pair climbed 0.30% to 130.55. Spanish unemployment data stated earlier today a large summer drop in the number of unemployed people.