Forex trends: yen hits multi-week lows versus majors

image Thursday morning in Asia the Japanese unit lost ground against a basket of currencies. Thus, the Japanese currency hit a 1-week low against the currencies of Europe, Switzerland and Canada. And at the same time, yen plummeted to a fresh multi-week low against the New Zealand dollar.

Concerning the equity front, Tokyo’s Nikkei average gained 1% after industrial output data helped buoy US stocks to fresh 2009 highs. The benchmark Nikkei gained 102.48 points to 10,373.25, after rising by 0.5% yesterday. The broader Topix moved up by 0.9% to 939.95.

Extending yesterday’s downtrend, the Japanese currency slumped to a weekly low of 134.21 against the euro and 88.43 against the Swiss franc by 8:15 pm ET, compared to Wednesday’s New York session closing values of 133.8 and 88.16, respectively. The next downside target levels for the Japanese currency are seen at 134.5 against the euro and 88.7 versus the franc.

Against the US dollar and UK’s sterling, the yen declined to 91.24 and 150.17 respectively, with 91.04 and 150.07 seen as the near term support levels. This may be compared to yesterday’s closing values of 150.05 against the pound and 90.96 versus the greenback.

Against the commodity related currencies, the yen slumped to an 8-day low of 79.75 against the Australian dollar and a 1-week low of 85.53 versus the Canadian dollar on Thursday morning in Asia. The yen that closed Wednesday’s North American deals at 79.47 against the aussie and 85.36 versus the loonie is currently trading at 79.57 and 85.33, respectively.

The yen also reached a fresh multi-week low of 65.14 against the NZ dollar by 8:35 pm ET, compared to 64.98 hit late New York Wednesday. If the kiwi drifts further lower, support is seen around the 65.4 level.


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