IV:Forex - Dollar rebounds vs. yen as Nikkei stabilizes
Investing.com - The dollar rebounded against the yen on Tuesday, as Japan’s Nikkei stabilized following extreme volatility in recent sessions, while investors turned their attention to U.S. data due later in the global day.
USD/JPY hit 102.06 during late Asian trade, the pair’s highest since Friday; the pair subsequently consolidated at 101.91, jumping 0.98%.
The pair was likely to find support at 100.73, Monday’s low and resistance at 102.57, Friday’s high.
Demand for the dollar continued to be underpinned by expectations that the Federal Reserve is moving closer to scaling back its USD85 billion-a-month asset purchase program.
Meanwhile, the yen’s weakening trend looked likely to remain intact as a result of the Bank of Japan’s massive easing program.
The yen was sharply lower against the euro, with EUR/JPY advancing 0.93% to 131.72.
The U.S. was to release private sector data on house price inflation and a report on consumer confidence later Tuesday.
