The Japanese yen traded higher against its major counterparts in European trading on Friday, as the yields on 10-year Japanese government bonds edged up after the Bank of Japan said it would reduce purchases of long-dated government bonds in market operations in October.

The central bank said that it plans to cut purchases of JGBs having a maturity of more than 10 years to 300 billion yen in its first auction in October, from 320 billion yen bonds in September.

This would be smallest JGB buying since boosting its asset purchase program in October 2014.

The benchmark yield on 10-year JGBs rose 1.5 basis points to minus 0.075 percent.

Further underpinning the currency was falling European shares, as Deutsche Bank's woes deepened and the price of oil took a tumble after recent sharp gains in reaction to the tentative OPEC deal to curb oil production.

On the economic front, the Ministry of Economy, Trade and Industry said that industrial production in Japan advanced 1.56 percent on month in August. That beat forecasts for an increase of 0.5 percent following the 0.4 percent decline in July.

The Ministry of Internal Affairs and Communications said that the average of household spending in Japan was down 4.6 percent on year in August, coming in at 276,338 yen. That missed expectations for a decline of 2.3 percent following the 0.5 percent fall in July.

The Ministry also said that the jobless rate in Japan came in at a seasonally adjusted 3.1 percent in August. That was above forecasts for 3.0 percent, which would have been unchanged from the previous month.

The currency was weaker against its major rivals in the Asian session.

The yen reversed from an early low of 101.78 against the greenback and edged up to 100.75. On the upside, 98.00 is possibly seen as the next resistance level for the yen.

The yen climbed to a 2-day high of 112.60 against the European currency, off its early low of 114.12. The yen is seen finding resistance around the 110.5 region.

The flash estimate from Eurostat showed that euro area inflation doubled in September and core inflation remained stable.

Inflation rose to 0.4 percent from 0.2 percent in August. This was the fourth consecutive rise in prices and exceeded the expected growth of 0.3 percent.

Bouncing off from an early new 2-week low of 105.28 against the Swiss franc, the yen advanced to 103.66. Continuation of the yen's uptrend may see it challenging resistance around the 102.00 mark.

Survey data from the KOF Swiss Economic Institute showed that a measure of the Swiss economic situation rebounded in September, suggesting that the outlook remains stable.

The KOF economic barometer rose to 101.3 points from 99.7 in August, revised from 99.8. Economists had expected a score of 100.5.

The yen strengthened to a 3-day high of 130.42 against the pound, after having fallen to 131.95 at 11:00 pm ET. Further uptrend is likely to take the yen to a resistance around the 129.00 level.

Data from the Office for National Statistics showed that the U.K. economy grew more than previously estimated in the second quarter.

Gross domestic product climbed 0.7 percent sequentially in the second quarter, slightly revised up from the second estimate of 0.6 percent.

The yen held steady against the loonie and the aussie, after climbing to a 2-day high of 76.37 and a 3-day high of 76.50 earlier in the session, respectively. At yesterday's close, the yen was worth 76.84 against the loonie and 77.13 against the aussie.

Looking ahead, Canada GDP data for August, Canada industrial and raw materials products price indexes for August, U.S. personal income and spending data for August, U.S. University of Michigan final consumer sentiment index for September, U.S. Chicago purchasing manager index for September and U.S. Baker Hughes rig count data are set to be announced in the New York session.

At 1:00 pm ET, Federal Reserve Bank of Dallas President Robert Kaplan will participate in a moderated Q&A session before the Stemmons Corridor Business Association 35th Annual Meeting, in Dallas, United States.

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