Jun 21, 2013, 12.40 PM | Source: Investing.com

Forex - USD/JPY higher on Fed statement

Forex - USD/JPY higher on Fed statement

Investing.com - The U.S. dollar was higher against the yen on Friday, as demand for the greenback remained supported by Federal Reserve Chairman Ben Bernanke's comments on Wednesday.

USD/JPY hit 97.89 during early European trade, the session high; the pair subsequently consolidated at 97.73, climbing 0.49%.

The pair was likely to find support at 96.20, Thursday's low and resistance at 98.98, the high of June 11.

The dollar gained ground after Fed Chairman Ben Bernanke on Wednesday said the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.

However, a string of mixed U.S. economic reports on Thursday fuelled uncertainty over the strength of the country's economic recovery.

The Federal Reserve Bank of Philadelphia said that its manufacturing index rose to 12.5 in June from minus 5.2 in May, outstripping expectations for a reading of minus 2.0 and rising at the fastest pace since April 2011.

The data came after the Department of Labor said the number of individuals filing for initial jobless benefits last week rose by 18,000 to a seasonally adjusted 354,000, a three-week high, compared to expectations for an increase of 4,000 to 340,000.

Elsewhere, Bank of Japan Governor Haruhiko Kuroda said financial markets will likely stabilise over time, reflecting improvements in Japan's economy.

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