The Japanese yen traded higher against its major counterparts in early European deals on Thursday amid risk aversion, as falling oil prices sparked concerns about the future pace of inflation and global growth.

Crude oil fell to $42 per barrel on lingering worries over growing production from Libya, Nigeria and the US, which undermines the effectiveness of the OPEC-led output cuts to rein in a three-year glut.

Investors await a two-day meeting of the European Council that kicks off in Brussels later today, with issues such as terrorism and climate change likely to he high on the agenda.

British Prime Minister Theresa May is expected to make her offer at the event over the status of European Union citizens living in the U.K.

Speaking to business leaders in Aomori, the Bank of Japan Deputy Governor Kikuo Iwata said that there is still a long way to go before achieving the inflation target of 2 percent.

Further, risks have continued to be skewed to the downside, particularly those regarding developments in overseas economies and Japan's inflation expectations.

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

The yen rose back to 140.67 against the pound, compared to Wednesday's closing value of 141.13. The next possible resistance for the yen is seen around the 138.00 region.

Having fallen to 124.43 against the euro at 6:00 pm ET, the yen reversed direction and climbed to 123.84. If the yen extends rise, 122.00 is likely seen as its next resistance level.

Reversing from an early low of 114.57 against the Swiss franc, the yen ticked up to 114.04. Continuation of the yen's uptrend may see it challenging resistance around the 113.00 level.

Figures from the Federal Customs Administration showed that Switzerland's foreign trade surplus increased in May, as exports grew faster than imports.

The trade surplus climbed to CHF 3.4 billion in May from CHF 1.9 billion in April. In March, the surplus was EUR 3.0 billion.

The yen strengthened to weekly highs of 83.73 against the aussie and 83.21 against the loonie and held steady thereafter. The yen is seen finding resistance around the 82.00 mark against both the aussie and the loonie.

The yen firmed to a 3-day high of 110.95 against the greenback in the Asian session and remained higher in remaining part of deals. Further uptrend may see the yen challenging resistance around the 109.00 area.

Looking ahead, U.S. weekly jobless claims for the week ended June 17, FHFA's house price index for April and leading indicators for May, as well as Canada retail sales for April are set for release in the New York session.

At 10:00 am ET, Eurozone flash consumer confidence index for June is due.

At the same time, Federal Reserve Governor Jerome Powel speaks about economic growth before the US Senate Committee on Banking, Housing, and Urban Affairs in Washington DC.

Swiss National Bank board member Andrea Maechler speaks in Zurich at 12:00 pm ET.

The Bank of England external MPC Member Kristin Forbes speaks at the London Business School at 2:00 pm ET.

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