Dollar backs off six-month high against yen

Dollar tilted lower in Asian trade away from January 9 highs against yen, following earlier data from Japan, and ahead of US employment data and after the conclusion of Federal Reserve Chair Jerome Powell's Congressional testimony. 

As of 06:03 GMT, USD/JPY fell 0.06% to 112.79 from the opening of 112.86, with an intraday low at 112.65, and a high at 112.89. 

Earlier Japanese data showed the Adjusted Merchandise Trade Balance with a surplus of 0.07 trillion yen in June, compared to a deficit of 0.30 trillion in May, while analysts expected a 0.15 trillion surplus.  

US Data

Now markets await US data on unemployment claims, expected to have risen 6 thousand to 220 thousand in the week ending July 14, while continuing claims are estimated with a 14 thousand drop to 1.725 million in the week ending July 7. 

The Philly Fed Manufacturing Index is expected to have increased to 21.5 in July from 19.9 in June, while the CB leading index is estimated with a 0.5% rise, up from 0.2% in May. 

In his two-day testimony before the two chambers of Congress, Fed Chair Jerome Powell pointed to strong economic growth this year with continued improvement in the labor market and inflation rates, while cautioning from short-term consequences to trade protectionism.