US dollar advanced against the yen after China’s GDP report

US dollar gained ground against the Japanese yen on Monday, following the release of Chinese GDP report, which said economy managed to grow in consonance with preliminary estimates during the second quarter of the year, chilling out fears over a possible slowdown in the second largest economy worldwide, which diminished safe haven demand for the yen.

USD/JPY cross rose to a session high at 99.61 at 7:39 GMT, after which consolidation followed at 99.53, still up by 0.17% for the day. Support was likely to be found at July 12th low, 98.66, while resistance was expected at July 4th high, 100.15.

On July 14th an official report stated that Chinese GDP rose by 7.5% during Q2 on annual basis, matching projections by experts, as industrial production and capital asset investments declined. Concerns were boosted that the government will not be able to meet its objective of 7.5% during 2013, while the country’s Prime Minister was struggling to curb credit boom. Chinese industrial production registered the slowest rate of increase since the beginning of recession in 2009, slowing down to 8.9% in June from 9.2% in May. At the same time, a separate report said, that Chinese retail sales increased by 13.3% during June on annual basis, up from 12.9% during the previous month.

Elsewhere, the yen was trading steadily against the euro, as EUR/JPY pair inched up by 0.05% to 129.91 at 8:15 GMT. In addition, GBP/JPY was also higher by 0.05% for the day, trading at 150.16 at 8:17 GMT.

Meanwhile, market participants began focusing on the retail sales, New York Empire Manufacturing and Business Inventories reports from the United States, scheduled for release later in the trading day.