Forexpros — The U.S. dollar rose to a four-day high against the yen on Thursday, as strong gains in Asian stock markets bolstered market sentiment and dampened demand for the safe haven yen.
USD/JPY hit 77.24 during late Asian trade, the pair’s highest since August 26; the pair subsequently consolidated at 76.88, gaining 0.29%.
The pair was likely to find support at 76.29, the low of August 11 and resistance at 77.51, the high of August 26.
Sentiment in Asian markets strengthened after data showed that Australian retail sales rose more-than-expected in July, while capital investment surpassed expectations in the second quarter.
Also Thursday, government data showed that China’s purchasing managers’ index rebounded from a 28-month low in August, climbing to 50.9 from 50.7. A reading above 50 on the index indicates an expansion in activity.
The data came after a government report on Wednesday showed that U.S. factory orders rose 2.4% in July, surpassing expectations for a 1.0% increase.
Meanwhile, the yen was higher against the euro, with EUR/JPY slipping 0.12% to hit 110.03.
Later in the day, the U.S. was to publish its closely watched weekly report on initial jobless claims, while the U.S. Institute of Supply Management was to produce data on manufacturing growth.
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