The Japanese yen strengthened against other major currencies in the Asian session on Friday, as the traders suspect the Bank of Japan (BoJ) may have intervened in the currency markets to prop up the currency.

The safe-haven yen rose against the U.S. dollar after soft U.S. inflation data in the month of June raised prospects of an interest rate cut by the U.S. Fed as soon as its September meeting. Bond yields also slipped and the U.S. dollar weakened against most currencies in the region.

According to CME Group's FedWatch Tool, the chances a rate cut in September have jumped to 84.6 percent following the report compared to 69.7 percent two days ago. In economic news, data from the Ministry of Economy, Trade, and Industry showed that Japan's industrial production expanded more than initially estimated in May after falling in the previous month. Industrial production advanced 3.6 percent on a monthly basis, reversing a 0.9 percent decrease in April. In the initial estimate, the rate of growth was 2.8 percent.

Year-on-year, industrial production recovered 1.1 percent in May versus a 1.8 percent fall in April. In the flash report, the rate of increase was 0.3 percent.

The capacity utilization rose 0.1 percent in May after falling 0.3 percent in the prior month.

In the Asian trading today, the yen rose to nearly a 4-week high of 96.30 against the NZ dollar, from yesterday's closing value of 96.78. The yen may test resistance around the 95.00 region.

Against the euro, the pound and the U.S. dollar, the yen advanced to 171.84, 204.22 and 157.99 from yesterday's closing quotes of 172.57, 205.03 and 158.80, respectively. If the yen extends its uptrend, it is likely to find resistance around 169.00 against the euro, 200.00 against the pound and 155.00 against the greenback.

The yen touched yesterday's near 4-week high of 176.46 against the Swiss franc, from yesterday's closing value of 177.08. The yen is likely to find resistance around the 174.00 region.

Against the Australia and the Canadian dollars, the yen edged up to 107.00 and 115.98 from Thursday's closing quotes of 107.33 and 116.47, respectively. On the upside, 104.00 against the aussie and 113.00 against the loonie are seen the next resistance levels for the yen.

Looking ahead, Canada building permits for May, U.S. PPI for June, U.S. University of Michigan's consumer sentiment index for July, U.S. WASDE report and U.S. Baker Hughes weekly oil rig count data are slated for release in the New York session.

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