The reports from Ukraine, indicating that Russian troops are operating in that embattled country, sent the US dollar down versus the yen, but the effect was limited by news of an upward revision to US Q2 GDP and a slight drop in jobless claims.
US economic growth was revised up to 4.2% from 4% for the second quarter, which confounded expectations of a slightly weaker reading of 3.9%. Meanwhile, jobless claims dropped to 298,000 from the expected 299,000, and the four-week moving average slipped below 300,000 for the first time since late 2006.
USD/JPY had been overbought for over a week, so a pullback had been expected, but the uptrend off the July lows should provide rising support, and would even allow for a drop back almost to ¥103. With USD/JPY now back below ¥104 this will once again provide upside resistance, with some support possible around ¥103.50.