The Japanese yen continued to be higher against its most major counterparts in early European deals on Wednesday, with geopolitical worries and uncertainty over the implementation of U.S. President Donald Trump's policy agenda sapping risk sentiment.

Investors remained concerned about the fate of the Republican plan to repeal and replace Obamacare ahead of an anticipated vote on Thursday. Trump has suggested the GOP cannot move forward with tax reform plans until lawmakers keep the promise to repeal and replace Obamacare.

Oil prices extended overnight losses as the Libyan government said it would re-open closed oil ports and on worries over rising U.S. inventories despite OPEC's attempts to rebalance market.

Investors largely shrugged off better-than-expected Japanese trade data for February and the BoJ's minutes from the January policy meeting.

The minutes from the Bank of Japan's monetary policy meeting on January 30 and 31 revealed that board members stated the country's economic recovery is continuing at a moderate pace.

"Exports had picked up, mainly led by automobile-related exports to advanced economies and IT-related ones to emerging economies in Asia, with the effects of the slowdown in emerging economies diminishing. They would likely continue their pick-up trend for the time being," the minutes said.

Data from The Ministry of Finance showed that Japan posted a merchandise trade surplus of 813.389 billion yen in February. That surpassed expectations for 807.2 billion yen following the downwardly revised 1,087.9 billion yen deficit.

Exports jumped 11.3 percent on year to 6.346 trillion yen, beating forecasts for 10.1 percent. Imports added an annual 1.2 percent to 5.533 trillion yen, missing expectations for 1.3 percent.

The currency has been trading in a positive territory in the Asian session.

The yen climbed to 111.27 against the greenback, a level unseen since November 2016. The yen is poised to locate resistance around the 110.00 region.

The yen rose to a 6-day high of 138.84 against the pound and a 2-week high of 120.22 against euro, from its early lows of 139.50 and 120.84, respectively. The next possible resistance for the yen is seen around 136.00 against the pound and 118.00 against the euro.

The yen advanced to more than a 3-week high of 111.86 against the Swiss franc, compared to Tuesday's closing value of 112.39. The yen is poised to locate resistance around the 110.00 mark.

The yen firmed to 83.23 against the loonie, its strongest since November 2016. If the yen extends gain, 82.00 is likely seen as its next resistance level.

The Japanese yen strengthened to a 2-1/2-month high of 84.94 against the aussie and a 4-month high of 78.05 against the kiwi, compared to Tuesday's closing values of 85.91 and 78.66,respectively. Continuation of the yen's uptrend may see it challenging resistance around 82.00 against the aussie and 76.00 against the kiwi.

Looking ahead, U.S. house price index for January and existing home sales for February are set for release in the New York session.

At 3:45 pm ET, the Bank of Canada Deputy Governor Lawrence Schembri speaks about business investment and the economic outlook at the Greater Vancouver Board of Trade.

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