Yen Falls As Asian Stock Markets Traded Higher

The Japanese yen weakened against other major currencies in the Asian session on Monday, as Asian stocks markets traded higher with traders looking to pick up stocks at reduced levels following recent weakness. Data showing a bigger than expected in U.S. jobs addition in the month of April has fueled hopes that the U.S. Fed will hold rates steady in the near future. In economic news, members of the Bank of Japan's Monetary Policy Board said that the country's economy has picked up steam, despite higher commodity prices, and it expected to continue to do so, minutes from the board's meeting on March 9 and 10 revealed on Monday.

Improved employment and household income have been primary factors in the economic recovery, the minutes continued. In terms of inflation, the board said it will continue qualitative and quantitative easing to as long as necessary to achieve the central bank's price target of 2 percent.

At the meeting, the BoJ left its ultra-loose monetary policy stance unchanged on Friday, maintaining a negative interest rate of -0.1 percent on current accounts that financial institutions maintain at the central bank.

Meanwhile, the services sector in Japan continued to expand in April, and at a faster rate, the latest survey from Jibun Bank revealed on Monday with a services PMI score of 55.4. That's up from 55.0 in March and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

In the Asian trading today, the yen fell to a 6-day low of 170.87 against the pound and a 5-day low of 135.29 against the U.S. dollar, from Friday's closing quotes of 170.25 and 134.82, respectively. If the yen extends its downtrend, it is likely to find support around 173.00 against the pound and 138.00 against the greenback.

Against the euro and the Swiss franc, the yen dropped to 4-day lows of 149.09 and 151.83, from Friday's closing quotes of 148.49 and 151.31, respectively. The yen may find support around 152.00 against the euro and 154.00 against the franc.

Against the Australia, the New Zealand and the Canadian dollars, the yen slipped to 6-day lows of 91.34, 85.25 and 101.13 from last week's closing quotes of 90.94, 84.83 and 100.77, respectively. On the downside, 93.00 against the aussie, 87.00 against the kiwi and 103.00 against the loonie are seen as the next support level for the yen.

Looking ahead, German industrial production for March is due to be released at 2:00 am ET in the late Asian session.

In the New York session, U.S. wholesale inventories for March and consumer inflation expectations data for April are slated for release.

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