Yen Drops Amid Rising Risk Appetite

The Japanese yen declined against its major counterparts in the Asian session on Wednesday, as most Asian shares rose following a sell-off in the previous session amid concerns over an outbreak of a coronavirus in China.

Health officials have already confirmed cases of the coronavirus infection in Thailand, Japan, South Korea and Taiwan. The U.S. too confirmed its first case of the coronavirus in a patient who recently returned from Wuhan, China.

The World Health Organization will consider whether to designate the outbreak an international public health emergency.

The yen declined to 122.02 against the euro, from a high of 121.72 seen at 5:00 pm ET. The next likely support for the yen is seen around the 124.00 level.

Reversing from an 8-day high of 113.32 hit at 7:45 pm ET, the yen fell to 113.50 against the franc. Next key support for the yen is likely seen around the 116.00 level.

The yen dropped to 143.74 against the pound, after rising to 143.25 at 5:00 pm ET. If the yen continues its fall, 146.00 is possibly seen as its next support level.

The yen retreated to 72.57 against the kiwi and 75.34 against the aussie, from its previous near 2-week highs of 72.33 and 75.03, respectively. The yen is poised to challenge support around 74.00 against the kiwi and 76.5 against the aussie.

Following a 9-day high of 83.92 set at 8:45 pm ET, the yen reversed direction and weakened to 84.14 versus the loonie. The yen is seen finding support around the 85.5 region.

The yen held steady against the greenback, after falling to 110.10 at 9:45 pm ET. The pair had ended yesterday's trading at 109.86.

Looking ahead, U.K. public sector finance data for December is set for release at 4:30 am ET.

In the New York session, Canada wholesale sales for November, CPI and new housing price index for December, U.S. FHFA's home price index for November and existing home sales for December are scheduled for release.

At 10:00 am ET, the Bank of Canada announces its decision on interest rates. The BoC is widely expected to keep borrowing costs unchanged at 1.75 percent.