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Yen Strengthens After Strong Retail Sales

The Japanese yen advanced against other major currencies in early Asian deals on Tuesday following an upbeat domestic retail sales data for January.

Retail sales in Japan climbed an annual 1.9 percent in January, the Ministry of Economy, Trade and Industry said today, standing at 11.341 trillion yen. That was well above forecasts for a decline of 0.1 percent following the 2.5 percent increase in December.

On a seasonally adjusted monthly basis, retail sales spiked 4.1 percent - again blowing past forecasts for a gain of 1.0 percent after adding 0.3 percent in December.

The yen that closed Monday's deals at 80.62 against the greenback and 126.72 against the pound rose to 4-day highs of 80.03 and 126.99, respectively. On the upside, the yen may target 79.5 against the greenback and 126.00 against the pound.

Against the franc and the euro, the yen rose to 89.08 and 107.32 with 88.5 and 106.5, respectively seen as the next upside target levels. The yen ended yesterday's deals at 89.66 against the franc and 108.02 against the euro.

The Japanese currency climbed to 86.14 against the aussie and 67.21 against the kiwi, compared to Monday's close of 86.73 and 67.79, respectively. If the yen rises further, it may target 85.00 against the aussie and 66.5 against the kiwi.

The yen edged up to 80.23 against the Canadian dollar from yesterday's close of 80.71. The next upside target level for the yen is seen at 79.5.

In the European session, Switzerland's UBS consumption indicator for January, German GfK consumer confidence for March, Eurozone economic confidence index for February and German preliminary CPI for February are due.

The U.S. durable good orders for January, S&P/Case-Shiller home price index for December and consumer confidence index for February are expected in the New York session.

by RTTNews Staff Writer

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