Forexpros - The U.S. dollar climbed to a two-week high against the yen
on Wednesday, after the release of upbeat U.S. economic reports sent the
greenback broadly higher.
USD/JPY hit 78.54 during U.S. morning trade, the pair's highest since September 19; the pair subsequently consolidated at 78.49, climbing 0.44%.
The pair was likely to find support at 78.13, the session low and resistance at 78.73, the high of August 30.
Industry data showed that service sector activity in the U.S. grew at a faster rate than expected in September, expanding for the 33rd consecutive month.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
The report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
Meanwhile, sentiment remained under pressure after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Separately, weak service sector data out of Europe and China fuelled concerns over the outlook for the global economic recovery.
Elsewhere, the yen was fractionnaly lower against the euro with EUR/JPY edging up 0.09%, to hit 101.06.
In Japan, a government official reiterated the country's determination to act firmly against excessive yen gains, saying its recent movements have been one-sided and do not reflect the country's economic fundamentals.
USD/JPY hit 78.54 during U.S. morning trade, the pair's highest since September 19; the pair subsequently consolidated at 78.49, climbing 0.44%.
The pair was likely to find support at 78.13, the session low and resistance at 78.73, the high of August 30.
Industry data showed that service sector activity in the U.S. grew at a faster rate than expected in September, expanding for the 33rd consecutive month.
The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 55.1 in September from a reading of 53.7 in August.
Analysts had expected the index to decline to 53.2 in September.
The report came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 162,000 in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
Meanwhile, sentiment remained under pressure after Spanish Prime Minister Mariano Rajoy on Tuesday ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid.
Separately, weak service sector data out of Europe and China fuelled concerns over the outlook for the global economic recovery.
Elsewhere, the yen was fractionnaly lower against the euro with EUR/JPY edging up 0.09%, to hit 101.06.
In Japan, a government official reiterated the country's determination to act firmly against excessive yen gains, saying its recent movements have been one-sided and do not reflect the country's economic fundamentals.
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