Forex - USD/JPY falls to 2-week lows after Japan data

The U.S. dollar fell to two-week lows against the yen on Friday, after the release of positive economic reports from Japan, while markets awaited upcoming U.S. economic growth data for more information on the strength of the country's recovery.

Dollar declines against yen on positive Japan data

USD/JPY hit 101.56 during late Asian trade, the pair's lowest since February 17; the pair subsequently consolidated at 101.73, shedding 0.39%.

The pair was likely to find support at 100.80, the low of February 5 and resistance at 102.83, the high of February 21.

Preliminary data earlier showed that industrial production in Japan rose 4% in January, more than the expected 3% increase, after a 0.9% gain the previous month.

A separate report showed that retail sales in Japan rose 4.4% last month compared to a year earlier, after a 2.6% increase in December. Analysts had expected retail sales to rise 3.8% in January.

Data also showed that household spending in Japan rose at an annualized rate of 1.1% last month, beating expectations for a 0.2% uptick, after a 0.7% rise in December.

Meanwhile, Tokyo's core consumer price inflation, which excludes fresh food, rose at an annualized rate of 0.9% in February, above expectations for a 0.8% advance, after a 0.7% increase in January.

Consumer price inflation rose 1.1% in February from a year earlier, after a 0.7% gain the previous month.

Meanwhile, the dollar found some support after Federal Reserve Chair Janet Yellen on Thursday said the central bank will probably continue tapering its asset purchases while tracking data to figure how much recent softness in the economy is due to the weather.

Ms. Yellen was speaking in testimony to the Senate banking committee in Washington.

The yen was higher against the euro, with EUR/JPY declining 0.31% to 139.56.

Later in the day, the U.S. was to release revised data on fourth quarter growth, as well as a report on manufacturing activity in the Chicago region, revised data on consumer sentiment and private sector data on pending home sales.