The Japanese yen advanced against its major rivals in the European session on Friday, as the spread of the delta variant coronavirus and China’s regulatory curbs weighed on sentiment.
The Chinese government has unveiled a five-year and 10-point plan outlining tighter regulation of much of its economy.
China said that it will widen its crackdown to include areas related to national security, technology and monopolies.
Investors await more hints on the Fed’s plan to withdraw stimulus after a surge in producer inflation and a drop in jobless claims for the third consecutive week.
Majority of economists expect that the Fed could announce a tapering of the QE program at its meeting in September.
The yen appreciated to 3-day highs of 110.23 against the greenback and 129.37 against the euro, off its early lows of 110.46 and 129.64, respectively. If the yen continues its rise, 108.00 and 127 are possibly seen as its next resistance levels against the greenback and the euro, respectively.
The yen firmed to an 8-day high of 152.07 against the pound and more than a 3-week high of 119.37 against the franc, after falling to 152.58 and 119.64, respectively in early deals. The yen may test resistance around 149.00 against the pound and 117.00 against the franc.
The yen reversed from its early lows of 88.22 against the loonie, 81.14 against the aussie and 77.44 against the kiwi, rising to 3-day highs of 88.00, 80.87 and 77.19, respectively. The yen is likely to find resistance around 86.00 against the loonie, 78.00 against the aussie and 74.00 against the kiwi.
Looking ahead, U.S. import and export prices for July and University of Michigan’s preliminary consumer sentiment index for August are set for release in the New York session.