Asian Market Update:

The Dollar held onto its gains in Asian trading, boosted by a rise in US Treasury yields to a five-year high this week, while investors renewed their appetite for risk and sold the low-yielding Yen in carry trades.

The market awaits for the US consumer price data later today to see if Treasury yields rise further, as well as comments by Bank of Japan Governor Toshihiko Fukui after the policy meeting at which the central bank held rates at 0.5% as widely expected.

Market participants expect the BOJ to raise rates to 0.75% as early as August, and they want to see if Fukui says anything to bolster that view.

Some traders say however, that even if he does any resulting Yen gains will likely be short lived as the BOJ is expected to take its time in raising rates, keeping them well behind those of other countries.

The US core consumer price index is expected to have risen by a moderate 0.2% in May from April. Also due are US industrial production figures and a consumer sentiment survey. Strong readings could signal ongoing strength in the US economy which would support the Dollar.

The Dollar is trading at 123.02 Yen near the 123.13 Yen level hit in New York trade yesterday. Traders noted that domestic investment trusts were selling the Yen against other currencies as they hunt for higher yields on behalf of individual investors putting their bonuses to work.

High-yielding currencies like the Australian and New Zealand Dollars also gained against the Yen, climbing as much as 0.3% and 0.4% respectively.

Technicals:

EURUSD
A push above 1.3315/19 can lead to 1.3335 and then 1.3369. Support at 1.3262 and then 1.3229.

GBPUSD
Resistance at 1.9735 and then 1.9785. Support at 1.9695 and 1.9665.

USDJPY
A break of the 123.13 high can lead to 124.05. Support at 122.85 and then 122.55.

EURJPY
A break through 163.37 can lead to 163.79 and 164.00. Support at 163.55 and 163.35.

AUDUSD

Downside pressure is increasing on daily charts with resistance now at 0.8406. Support at 0.8365 and then 0.8335.