Forex trends: yen gains ground versus majors on stock prices fall

Friday, during early Asian deals, the Japanese unit surged against its key counterparts, hitting a new multi-month high against its European and Swiss counterparts as a fall in stock prices prompted investors to seek the safety of the Japanese currency. The yen also rose to a 4-day high against the US dollar and the British pound.The Japanese stock market opened sharply lower Friday after weak US economic data overnight stoked concerns about the strength of an economic recovery. Additionaly, the yen's continuing rise against the U. dollar dragged down exporter stocks. Thus, the benchmark Nikkei 225 Index finished the morning session at 9,733.42, losing 245.22 points or 2.46%. This set the lowest intraday level since July 22, when the index touched 9,667.69.Against the US dollar, the Japanese yen edged higher during early Asian deals on Friday. At 11:05 pm ET, the yen reached a 4-day high of 89.23 against the dollar, compared to 89.62 hit late New York Thursday. The next upside target level for the yen is seen around 89.61.The Japanese unit that closed Thursday's North American session at 130.36 against the European currency rose to 129.66 during Friday's early Asian trading. This set the highest point for the Japanese yen since July 14, 2009. If the yen gains further, 128.1 is seen as the next target level.Against the British pound, the Japanese currency traded higher during today's early Asian deals. At 8:10 pm ET, the yen climbed to a 4-day high of 142.00 versus the pound, compared to Thursday's closing value of 143.02. On the upside, 139.0 is seen as the next target level for the yen. The yen advanced to 85.68 against the Swiss franc at 8:10 pm ET. This set the highest point for the Japanese currency since July 14, 2009. The franc-yen pair is presently trading at 85.90 with 85.2 seen as the next resistance level.