Yen Extends Rise Amid Rising Risk Aversion

The Japanese yen continued to be strong against the other major currencies in the Asian session on Friday amid rising risk aversion, following the sell-off on Wall Street overnight and as the Bank of Japan (BOJ) shocked financial markets by keeping its monetary policy steady despite multiple headwinds plaguing the economy.

Crude oil for June delivery are currently down $0.03 to $46.00 a barrel. Oil prices fell, as output in the Middle East may slow rise in April, even though U.S. crude production and U.S. dollar fall are backing support.

The Japanese market is closed for Showa day holiday.

Thursday, the yen rose 2.79 percent against the euro, 2.58 percent against the pound, 3.00 percent against the yen and 2.56 percent against the franc.

In the Asian trading, the yen rose to nearly a 2-week high of 121.89 against the euro, a 1-week high of 156.71 against the pound and nearly a 2-1/2-year high of 111.01 against the Swiss franc, from yesterday's closing quotes of 122.69, 157.84 and 111.81, respectively. If the yen extends its uptrend, it is likely to find resistance around 120.00 against the euro, 151.00 against the pound and 110.00 against the franc.

Against the U.S, the Australian, the New Zealand and the Canadian dollars, the yen advanced to a 1-1/2-year high of 107.08, more than a 2-week high of 81.73, nearly a 2-week high of 74.76 and a 10-day high of 85.39 from yesterday's closing quotes of 108.08, 82.38, 75.18 and 86.08, respectively. The yen may test resistance near 106.00 against the greenback, 80.00 against the aussie, 73.00 against the kiwi and 83.00 against the loonie.

Looking ahead, German retail sales data for March is due to be released in the pre-European session at 2:00 am ET.

Swiss KOF leading indicator for April, BOE U.K. mortgage approvals for March, U.K. M4 money supply data for March, Eurozone core CPI data for April, preliminary eurozone GDP data for the first quarter and eurozone unemployment data for March are slated for release later in the day.

In the New York session, Canada GDP data for February, industrial product and raw materials price indexes for March, U.S. personal income and spending data for March, U.S. Chicago PMI for April and the University of Michigan's final U.S. consumer sentiment index for April are set to be published.