Japanese Yen Climbs On Rate Concerns

(RTTNews) - The Japanese yen appreciated against its major counterparts in the European session on Friday, as strong U.S. economic data ignited fears of more interest rate hikes by the Federal Reserve.

U.S. private-sector payrolls expanded by 497000 in June, according to the payroll-services firm ADP on Thursday - coming in well ahead of the downwardly revised 267,000 gain in May and the 220,000 consensus estimate.

The U.S. services sector also grew faster than expected in June, raising fears of more interest rate hikes ahead by the Federal Reserve to keep inflation under control.

Investors await the U.S. monthly jobs report due later in the day, which could offer additional clues on the economy and rate outlook.

Economists expect a job growth of 225,000 in June, while the unemployment rate is forecast to fall to 3.6 percent.

The yen climbed to 2-week highs of 142.87 against the greenback, 159.53 against the franc and 155.43 against the euro, off its early lows of 144.19, 160.92 and 156.93, respectively. The yen is seen finding resistance around 139.00 against the greenback, 144.00 against the franc and 146.00 against the euro.

The yen touched 182.19 against the pound, its highest level since June 26. The yen is likely to face resistance around the 175.00 level.

The yen firmed to a 1-week high of 88.28 against the kiwi, more than 2-week high of 106.87 against the loonie and more than a 3-week high of 94.86 against the aussie, from its early lows of 88.83, 107.83 and 95.59, respectively. The next possible resistance for the yen is seen around 84.00 against the kiwi, 104.5 against the loonie and 92.00 against the aussie.

Looking ahead, U.S. and Canadian jobs data and Canada Ivey PMI for June will be out in the New York session.