The Japanese yen strengthened against its major counterparts in the European session on Thursday, as investors reacted to hawkish comments from Fed officials and worried over recession risks.
Federal Reserve Bank of New York President John Williams said on Wednesday that inflation remained high and the central bank is prepared to use monetary policy tools to restore price stability.
Markets see an 86 percent chance that the Fed will raise rates by 25 basis points next month and then keep rates on hold through this year.
Data from the Ministry of Finance showed that Japan posted a merchandise trade deficit of 754.506 billion yen in March.
That beat forecasts for a deficit of 1,294.8 billion yen following the 898.1 billion yen shortfall in February.
The yen advanced to 149.84 against the franc and 134.38 against the greenback, from its early lows of 150.40 and 134.97, respectively. The yen may find resistance around 144.00 against the franc and 129.00 against the greenback.
The yen climbed to 147.29 against the euro and 167.11 against the pound, off its early lows of 147.83 and 167.70, respectively. The currency is seen finding resistance around 139.00 against the euro and 163.00 against the pound.
The yen appreciated to a 6-day high of 99.85 against the loonie and a 3-day high of 82.85 against the kiwi, up from its prior lows of 100.24 and 83.61, respectively. Next immediate resistance for the currency is seen around 96.00 against the loonie and 80.00 against the kiwi.
The yen was up against the aussie, at 90.24. On the upside, 88.00 is likely seen as its next resistance level.
Looking ahead, at 7:30 am ET. ECB monetary policy meeting accounts are set to be released.
In the New York session, U.S. weekly jobless claims data, U.S. Philadelphia Fed manufacturing index for April, Eurozone flash consumer confidence for April, U.S. leading index, and existing home sales data for March are due.
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