Investing.com - The dollar slid against the yen on Monday after a Chinese factory gauge missed expectations and sparked safe-haven demand for the Japanese currency, while escalating unrest in Ukraine also watered down the greenback.
In U.S. trading, USD/JPY was down 0.11% and trading at 102.08, up from a session low of 101.87 and off a high of 102.26.
The pair was expected to test support at 101.87, the earlier low, and resistance at 103.02, Friday''s high.
Investors were paying close attention to events unfolding in Ukraine, after conflict between the government and pro-Russian separatists grew more widespread over the weekend.
Fears that the U.S. will get dragged deeper into conflict and stifle recovery softened the greenback.
Elsewhere, weak output data out of China sparked safe-haven demand for the yen.
A final reading of China’s HSBC manufacturing purchasing managers’ index came in at 48.1 April, down from a preliminary estimate of 48.3 and missing forecasts for an uptick to 48.4. A reading below 50 indicates a contraction.
Elsewhere, profit taking from Friday''s upbeat jobs report softened the greenback as well.
The dollar firmed last week after the Labor Department reported that the U.S. economy added 288,000 jobs in April, well above expectations for jobs growth of 210,000, while the unemployment rate dropped to a five-and-a-half year low of 6.3%.
Still, concerns that long-term unemployment will remain a problem for the U.S. economy tarnished the otherwise positive jobs report, as the headline jobless rate fell in part due to a drop in the labor force, a sign that many who have been out of work for a long time quit looking for jobs and thus are no longer considered part of the labor pool.
Supporting the U.S. currency, however, was an upbeat report on the U.S. service sector.
In a report, the Institute of Supply Management said its non-manufacturing purchasing managers'' index rose to a five-month high of 55.2 in April, from a reading of 53.1 in March, compared to expectations for a rise to 54.1.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY down 0.05% at 141.66, and GBP/JPY trading down 0.11% at 172.21.
On Tuesday, the U.S. is to release trade data.
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