Yen Rises On Upbeat GDP Data

(RTTNews) - The Japanese yen strengthened against other major currencies in the Asian session on Monday, after data showed that Japan's gross domestic product expanded in the fourth quarter of 2023.

Data from the Cabinet Office showed that Japan's gross domestic product expanded a seasonally adjusted 0.1 percent on quarter in the fourth quarter of 2023. That was shy of forecasts for an increase of 0.3 percent following the 0.7 percent contraction in the previous three months.

On an annualized basis, GDP was up 0.4 percent, exceeding expectations for a contraction of 0.4 percent after slumping 2.9 percent in the three-month prior.

GDP capital expenditure was up 2.0 percent on quarter, topping forecasts for a decline of 0.1 percent after slipping 0.4 percent in Q3.

Asian stock markets also traded lower, following the broadly negative cues from Wall Street on Friday, as traders reacted to mixed U.S. monthly jobs data and are cautious ahead of the release of key U.S. inflation data on Tuesday that could have a more profound impact on the outlook for interest rates. Some traders booked profits following the recent market strength.

In the Asian trading today, the yen rose to nearly a 1-month high of 160.38 against the euro and nearly a 1-1/2-month high of 167.09 against the Swiss franc, from Friday's closing quotes of 160.85 and 167.52, respectively. If the yen extends its uptrend, it is likely to find resistance around 158.00 against the euro and 164.00 against the franc.

Against the pound and the greenback, the yen edged down to 188.46 and 146.54 from last week's closing quotes of 189.09 and 167.52, respectively. The yen is likely to find support around 185.00 against the pound and 145.00 against the greenback.

Against Australia, the New Zealand and the Canadian dollars, the yen slipped to nearly a 1-month high of 97.06, more than a 1-month high of 90.56 and nearly a 2-month high of 108.73, respectively. On the downside, 95.00 against the aussie, 89.00 against the kiwi and 107.00 against the loonie are seen as the next support levels for the yen.

Looking ahead, U.S. CB employment trends index for February and U.S. NY Fed 1-Year consumer inflation expectations results are slated for release in the New York session.