Investing.com - The dollar pushed higher against the yen on Monday following weak Japanese trade data and comments by the Bank of Japan governor, but gains were limited amid ongoing concerns over the outlook for the Federal Reserve’s stimulus program.
USD/JPY hit 98.16 during late Asian trade, the session high; the pair subsequently consolidated at 98.11, gaining 0.34%.
The pair was likely to find support at 97.55, Friday’s low and resistance at 98.58, the high of October 14.
The yen slid after data released on Monday showed that Japan posted a trade deficit of JPY932.1 billion in September, as export growth slowed. It was the 15th consecutive monthly deficit, the longest run on record.
BoJ Governor Haruhiko Kuroda reiterated Monday that the bank would stick to its stimulus program and added that the economy was on track to reach the bank's 2% inflation target.
The dollar’s gains looked likely to remain limited amid mounting expectations that the Federal Reserve will delay tapering its stimulus program in the aftermath of the 16-day U.S. government shutdown.
Investors were awaiting U.S. data releases later in the week after the shutdown delayed the release of some key economic reports. The September nonfarm payrolls report, which had been originally scheduled for release on October 4, was due on Tuesday.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.30% to 134.21.
In the euro zone, data on Monday showed that German producer price inflation rose 0.3% from a month earlier in September, better than expectations for a 0.1% increase.
