The Japanese yen firmed against its major counterparts in the European session on Thursday, as European shares declined on trade worries after U.S. President Donald Trump ordered his administration to consider raising the tariffs on Chinese imports.
Investors also wait for the interest rate decision from the Bank of England.
Fears over a trade war returned to the fore after Trump administration said on Wednesday that is mulling plan to impose a 25% tariff on $200 billion in Chinese imports to put further pressue on Beijing.
Data from the Bank of Japan showed that Japan’s monetary base rose 7.0 percent on year in July, coming in at 497.639 trillion yen.
That follows the 7.4 percent jump in June.
The yen advanced to 2-day highs of 145.75 against the pound, 112.13 against the franc and 85.57 against the loonie, from its early lows of 146.66, 112.64 and 85.95, respectively. If the yen rises further, 144.00, 111.00 and 84.00 are likely seen as its next resistance levels against the pound, the franc and the loonie, respectively.
The yen reversed from its early lows of 82.74 against the aussie and 130.29 against the euro, rising to 3-day highs of 82.06 and 129.48, respectively. The yen is seen finding resistance around 81.00 against the aussie and 128.00 against the euro.
The yen climbed to a 2-day high of 145.75 against the pound, from a low of 146.66 hit at 5:30 pm ET. On the upside, 144.00 is possibly seen as the next resistance level for the yen.
The yen ticked up to 111.50 against the greenback, reversing from a low of 111.74 touched at 3:00 am ET. The next possible resistance for the yen is seen around the 110.00 level.
Meanwhile, the euro fell against its major rivals amid a sell-off in European shares.
The euro declined to a 2-week low of 1.1608 against the greenback and a 6-day low of 0.8876 against the pound, coming off from its early highs of 1.1668 and 0.8899, respectively. The euro is poised to locate support around 1.15 against the greenback and 0.87 against the pound.
Reversing from its early highs of 1.1571 against the franc and 1.5168 against the loonie, the single currency hit more than a 4-week low of 1.1541 and a 1-1/2-month low of 1.5126, respectively. The euro is seen finding support around 1.14 against the franc and 1.50 against the loonie.
Looking ahead, at 7:00 am ET, the Bank of England announces its decision on interest rates. Economists expect the central bank to hike its benchmark rate to 0.75 percent, while maintaining asset purchases at GBP 435 billion.
In the New York session, U.S. weekly jobless claims for the week ended July 28, factory orders and durable goods orders for June are scheduled for release.