Yen Trades Lower Amid Risk Appetite

The Japanese yen traded lower against its major counterparts in the Asian session on Monday, as optimism about U.S.-China trade talks reduced the demand of safe-haven assets.

In a post on Twitter last week, Treasury Secretary Steven Mnuchin described the latest round of high-level U.S. trade talks as "constructive."

High-level trade talks are set to resume in Washington this week.

Sentiment was buoyant after official data showed China's factory activity in March unexpectedly grew for the first time in fourth months.

The Caixin/Markit PMI also showed the manufacturing sector in the world's second biggest economy returning to growth.

The yen fell to 145.10 against the pound, from a high of 144.39 seen at 7:30 pm ET. If the yen declines further, 113.00 is likely seen as its next support level.

The Japanese currency declined to a 10-day low of 111.62 against the franc and a 6-day low of 124.86 against the euro, off its early highs of 111.41 and 124.44, respectively and held steady thereafter. On the downside, 113.00 and 127.00 are likely seen as the next support levels for the yen against the franc and the euro, respectively.

Reversing from its early highs of 78.80 against the aussie and 83.02 against the loonie, the yen dropped to near 2-week lows of 79.22 and 83.31, respectively and held steady thereafter. The yen is poised to find support around 80.5 against the aussie and 85.00 against the loonie.

The yen slipped to near a 2-week low of 111.19 against the greenback and a 5-day low of 75.96 against the kiwi, coming off from its early highs of 110.88 and 75.52, respectively and held steady thereafter. The yen is seen challenging support around 113.00 against the greenback and 77.00 against the kiwi.

Looking ahead, PMIs from major European economies, Eurozone CPI for March and jobless rate for February are due in the European session.

In the New York session, U.S. retail sales for February, ISM manufacturing index for March, construction spending for February and business inventories for January are scheduled for release.

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