Japanese Yen Exhibits Weakness Against Most Majors

The Japanese yen slipped against its most major counterparts in the Asian session on Thursday, amid divergence in monetary policies between the Bank of Japan and the U.S. Federal Reserve.

Wednesday's positive data on U.S. jobless claims, GDP growth and Fed's preferred inflation measure intensified expectations for a faster rate hike than projected by the Fed.

The minutes from the Fed's latest meeting showed that the central bank could adjust the pace of asset purchases and raise the federal funds rate sooner than estimated if inflationary pressures continue.

Traders are pricing in an 80 percent chance of a rate hike by the Fed in mid-June 2022.

In contrast, the Bank of Japan is expected to maintain an accommodative monetary policy to support the economy.

Final data from the Cabinet Office showed that Japan's leading index decreased less than estimated in September.

The leading index, which measures the future economic activity, fell to 100.9 in September from 101.3 in August. In the initial estimate, the reading was 99.7.

The yen weakened to 154.06 against the pound, 129.46 against the euro and 83.20 against the aussie, after rising to 153.73, 129.21 and 83.00, respectively in prior deals. The next possible support for the yen is seen around 157.00 against the pound, 131.5 against the euro and 86.00 against the aussie.

The yen slipped to a 10-day low of 123.71 against the franc, off an early high of 123.34. Against the loonie, the yen reached an 8-day low of 91.27. The yen is likely to find support around 126.00 against the franc and 93.00 against the loonie.

On the other hand, the yen edged up to 79.21 against the kiwi, from a low of 79.54 hit at 8:15 pm ET. On the upside, 78.00 is possibly seen as its next resistance level.

The yen rebounded to 115.31 against the greenback, from Wednesday's multi-year low of 115.52. The next likely resistance for the yen is seen around the 112.00 level.

Looking ahead, at 7.30 am ET, the European Central Bank releases the accounts of the monetary policy meeting of the governing council held on October 27 and 28.