US dollar reached five-week highs against the Japanese yen on Wednesday, supported by expectations, regarding FEDs easing policy future.
USD/JPY cross hit a session high at 100.82 at 6:29 GMT and highest point since May 31st, after which consolidation followed at 100.75. Support was likely to be found at July 2nd low, 99.50, while resistance was to be met at May 31st high, 101.27.
On Tuesday an official report stated, that US factory orders climbed by 2.1% in May to 485 billion USD on a monthly basis, above the projected 2.0%, and further improving in comparison with April, when orders showed 1.3% gains, a revision up from 1.0% previously. This was another indicator to add to the overall picture that economy was picking up.
Investors were expecting Friday’s US non-farm payrolls report, in pursuit of further clues on when the Federal Reserve may decide to scale back its 85 billion-USD-a-month asset purchases.
The yen was lower against the euro, as EUR/JPY moved up by 0.06% to 130.65.
A series of vital US economic indicators was expected later today, including ISM Non-Manufacturing Composite index, Initial Jobless Claims, ADP Employment Change and Trade Balance. Positive results would boost the US dollar further.
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