Forex - Yen hits 1-week low vs. dollar after weak Japanese data

Forex Pros – The yen tumbled to a 1-week low against the U.S. dollar on Thursday, as risk appetite sharpened and after worse-than-expected Japanese economic data.

USD/JPY hit 88.46 during early European trade, the pair's highest since July 1; the pair subsequently consolidated at 88.32, gaining 0.69%.

The pair was likely to find support at 86.96, the low of July 1 and a 19-month low, and resistance at 89.41, the high of June 29.

Late Wednesday, official data showed that Japanese machinery orders fell the most since August 2008. In a report, the Cabinet Office said machine orders were down 9.1% in May from April.

The report seemed to highlight a split between the government and the central bank as following the report Cabinet Office spokesman Keisuke Tsumura said the outlook was becoming less certain, while the Governor of the Bank of Japan said the economy will keep expanding.

The yen was also down against the euro, with EUR/JPY gaining 0.8% to hit 111.7.

Later Thursday, the U.S. was to publish key data on initial jobless claims.