Investing.com - The dollar regained ground against the yen on Tuesday as investors looked ahead to a speech on growth strategy by Japanese Prime Minister Shinzo Abe on Wednesday.
USD/JPY hit 100.33 during late Asian trade, the session high; the pair subsequently consolidated at 100.28, gaining 0.76%.
The pair was likely to find support at 98.85, Monday’s low and a one-month low and resistance at 101.23, Monday’s high.
Prime Minister Abe was to lay out further strategies for economic growth on Wednesday, after the Bank of Japan unveiled unprecedented easing and the government boosted spending in order to combat deflation in the world’s third largest economy.
The dollar fell below 100 per yen for the first time since May 9 on Monday after data showed that activity in the U.S. manufacturing sector contracted for the first time in six months in May.
The Institute for Supply Management said its index of purchasing managers fell to 49.0, the lowest level since June 2009 and below the 50 level that separates contraction from growth.
The weak data dampened expectations that the Federal Reserve will start to unwind its USD85 billion-a-month asset purchase program later this year.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.54% to 130.81.
The U.S. was to release official data on the trade balance later in the day.
