Yen Recovers From 5-day Low Against Euro And Canadian Dollar





the yen recovered from its early Asian session's 5-day low against the currencies of Europe and Canada.

The yen also rebounded against the franc and the pound and remained higher versus the greenback and NZ dollar.
Asian stock markets are trading in positive territory today with investors staying fairly bullish on the back of a firm close on Wall Street overnight and on expectations the global economy will see a sustained recovery. Gains, however, are just modest in most of the markets in the region with a section of investors treading cautiously at higher levels ahead of corporate earnings results.
Japan's benchmark Nikkei 225 index is currently trading at 10,527.75 - up 17.93 points or 0.17% over its previous close.

Japan posted a current account surplus of 926.2 billion yen in November, the Ministry of Finance said today. That was lower than the forecasts for a surplus of 972.5 billion yen after showing a surplus of 1.436 trillion yen in October. The November figure marked a decline of 15.7% on year, again shy of estimates for an 11.8% annual contraction following the 2.9% increase in the previous month.

Japan saw a trade surplus of 259.7 billion yen, below forecasts for a surplus of 297.7 billion yen after posting a surplus of 912.9 billion yen a month earlier.
After a brief slide, the yen advanced against the US dollar in early Asian deals on Wednesday. The yen is now worth 83.10 against the dollar with 82.9 seen as the next upside target level. At yesterday's close, the dollar-yen pair was quoted at 83.27.

The yen that declined to a 5-day low of 108.37 against the euro in early Wednesday Asian session at 9:15 pm ET rebounded thereafter. As of now, the yen is trading near Tuesday's close 108.04 per euro. If the yen gains further, it may likely target the 107.8 level.

After hitting a 5-day low of 84.34 against the Canadian dollar in early Wednesday Asian deals at 6:15 pm ET, the yen bounced back. At present, the loonie-yen pair is trading near yesterday's close of 84.09. The next upside target level for the Japanese currency is seen at 83.4.

The yen also recouped its early Wednesday Asian session's losses against the currencies of U.K. and Switzerland. At present, the yen is worth 130.30 against the pound and 85.30 against the franc, compared to early lows of 130.36 and 85.71, respectively. If the yen rises further, it may target 85.0 against the franc and 129.6 against the pound. The yen closed yesterday's trading at 85.54 against the franc and 129.92 against the pound.

During Asian deals on Wednesday, the yen rose slightly against the New Zealand dollar. Currently, the yen is worth 63.11 against the kiwi, compared to yesterday's close of 63.24. If the yen strengthens further, it may likely target the 62.9 level
The yen climbed to 81.75 against the Australian dollar in early Wednesday Asian deals at 5:50 pm ET. Although the yen eased thereafter as Aussie recovered on upbeat domestic home loans data, the pair reversed direction shortly. The yen is now worth 81.87 against the aussie. The aussie-yen pair closed yesterday's trading at 82.03.

Housing finance commitments for owner-occupied housing rose 2.5% month-on-month in November to a little over 50,500, the Australian Bureau of Statistics said. Economists had forecast a 1% drop after the 2.2% rise in October.

In the upcoming European session, trade balance reports from U.K. and France and industrial production reports from Italy and Eurozone - all for the month of November are expected.

Canada's new housing price index for November, U.S. import and export prices indexes for December and the Federal Reserve's Beige Book are scheduled for release in the New York session.