Forexpros – The Japanese yen posted gains against the U.S. dollar in afternoon trade Friday, as the U.S. economy reported slow growth and an agreement on a plan to raise the U.S. debt limit remained in limbo..
In afternoon U.S. trade USD/JPY was lower by 0.80% to hit 77.07, after reaching a high of 77.87.
The pair was likely to find support at 77.03, the day’s low, and resistance at 78.87, the day’s high.
U.S. Gross Domestic Product rose just 1.3% for the quarter, according to the U.S. Bureau of Economic Analysis. The figure, released earlier Friday, was far lower than the 1.7% increase anticipated by economists.
The greenback was lifted in late Friday Asian trade by a report from Japan’s Ministry of Internal Affairs that the country’s unemployment rate rose to 4.6% in June from 4.5% in May. Market expectations were for the jobless rate to remain unchanged.
A separate release from the Ministry of Economy, Trade and Industry reported that Japan’s industrial output grew just 3.9% year on year in the month of June, below forecasts of a 4.3% increase.
Meanwhile the yen moved higher against both the euro and the British poind with EUR/JPY down 0.49% to hit 110.79 and GBP/JPY lower by 0.37% to hit 126.71.
Market players remain focused on developments in the U.S. on a deal to raise the nation’s debt ceiling before an August 2 deadline. Competing plans were expected to reach the House of Representatives and Senate for approval as early as late Friday.
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