Yen Rises As Most Asian Stock Markets Traded Lower

The Japanese yen strengthened against other major currencies in the pre-European session on Monday. This was caused by most Asian stocks trading lower as investors digested the ouster of White House chief strategist Steve Bannon by U.S. President Donald Trump. Also, the start of joint military drills by the U.S. and South Korea today dampened investor sentiment.

In other economic news, data from the Ministry of Economy, Trade and Industry showed that Japan's all industry activity recovered in June. The all industry activity index rose 0.4 percent month-on-month in June, reversing a 0.8 percent fall in May. The monthly growth came in line with expectations.

On a yearly basis, all industry activity growth eased to 2.2 percent in June from 3.2 percent in May.

In the Asian trading today, the yen held steady against its major rivals.

In the pre-European trading, the yen rose to a 6-day high of 112.91 against the Swiss franc, from an early low of 113.34. The yen may test resistance near the 111.00 region.

Against the euro and the pound, the yen advanced to 128.09 and 140.33 from early lows of 128.61 and 140.85, respectively. The yen is likely to find resistance around 127.00 against the euro and 138.00 against the pound.

Against the U.S., the Australian, the New Zealand and the Canadian dollars, the yen edged up to 109.10, 86.44, 79.81 and 86.59 from early lows of 109.42, 86.75, 80.00 and 86.97, respectively. If the yen extends its uptrend, it is likely to find resistance around 108.00 against the greenback, 85.00 against the aussie, 78.00 against the kiwi and 84.00 against the loonie.

Looking ahead, Canada wholesale sales data for June is due to be released at 8:30 am ET.