The Japanese yen fell against its key counterparts on Wednesday, ahead of the U.S. Federal Reserve’s release of minutes from the June meeting that could offer more clues on the central bank’s policy outlook.
Market participants keenly await the minutes to see whether there is a growing support among officials to start tapering bond purchases.
U.S. Treasury yields stabilized after a fall on Tuesday in the wake of a slowdown in U.S. service sector growth in June.
Weaker U.S. data tempered bets on a faster tightening of monetary policy.
Investors are positioning for a less hawkish Fed amid signals that the economy may not be prone to overheating.
Preliminary data from the Cabinet Office showed that Japan’s leading index decreased in May.
The leading index, which measures the future economic activity, fell to 102.6 in May from 103.8 in April. In March, reading was 102.4.
The yen dropped to 110.79 against the greenback, 131.01 against the euro and 120.03 against the franc, from its early fresh 2-week high of 110.40, more than 2-week highs of 130.50 and 119.39, respectively. The yen is seen finding support around 112 against the greenback, 133 against the euro and 122 against the franc.
Reversing from its prior highs of 77.38 against the kiwi and 88.52 against the loonie, the yen edged down to 77.92 and 89.06, respectively. The yen is likely to test support around 80 against the kiwi and 90 against the loonie, if it drops further.
The yen came off from its Asian session’s fresh 2-week high of 82.68 against the aussie, with the pair trading at 83.24. The yen is poised to target support around the 86 level.
The yen was trading at 152.99 against the pound, down from more than a 2-week high of 152.33 seen in the Asian session. On the downside, 154.00 is likely seen as its next support level.
Looking ahead, Canada Ivey PMI for June will be featured in the New York session.
The Fed minutes from the June 15-16 meeting are set for release at 2:00 pm ET.