Japanese Yen Weakens Amid Upbeat Economic Data

The Japanese yen fell against its major counterparts in the New York session on Wednesday, as recession concerns receded following strong U.S. services sector activity for July.

Data from the Institute for Supply Management showed an unexpected acceleration in the pace of growth in U.S. services sector activity in the month of July.

The ISM said its services PMI rose to 56.7 in July from 55.3 in June, with a reading above 50 indicating growth in the sector. The uptick came as a surprise to economists, who had expected the index to dip to 53.5.

St. Louis Federal Reserve President James Bullard said on CNBC's Squawk Box that the economy is not in a recession and signalled further rate hikes until there is clear evidence that inflation is cooling.

U.S. stocks advanced, with Dow rising 1.37 percent, Nasdaq climbing 2.59 percent and the S&P 500 higher by 1.64 percent.

The yen weakened to 5-day lows of 136.42 against the euro and 134.55 against the greenback, following its prior highs of 134.83 and 132.28, respectively. The yen may challenge support around 138.00 against the euro and 136.00 against the greenback.

The yen touched 5-day lows of 84.02 against the kiwi and 104.58 against the loonie, down from its previous highs of 82.74 and 102.88, respectively. The yen is seen finding support around 86.00 against the kiwi and 106.00 against the loonie.

The yen slid to a 5-day low of 163.06 against the pound and a 2-day low of 139.67 against the franc, off its early highs of 161.21 and 138.61, respectively. The next possible support for the yen is seen around 165.00 against the pound and 142.00 against the franc.

Against the aussie, the yen was down at a 2-day low of 93.16. Should the yen falls further, 96.00 is likely seen as its next possible support level.