The dollar extended its losses on Thursday, shedding 1 percent against the yen as weak U.S. economic data sparked concern about the strength of recovery.

The dollar fell to 87.54 yen JPY=, down 1 percent from late Wednesday. Technical strategists said the dollar's break below 88.50 yen may signal the start of a downtrend for the pair.

(Reporting by Steven C. Johnson; Editing by Theodore d'Afflisio)