Investing.com - The dollar edged higher against the yen on Tuesday as demand for the greenback continued to be supported by expectations that the Federal Reserve will start to unwind its asset purchase program later this year.
USD/JPY hit 101.30 during late Asian trade, the session high; the pair subsequently consolidated at 101.06, edging up 0.10%.
The pair was likely to find support at 100.21, the low of May 31 and resistance at 101.52, Monday’s high and a six week high.
The dollar’s strengthening trend looked likely to remain intact after data last week showed that the U.S. economy added more jobs than expected in June, reinforcing the view that the recovery in the labor market is on track.
The Labor Department said the economy added 195,000 jobs last month, more than the 165,000 increase forecast by economists.
Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 if the economy picks up as the central bank expects.
The pair was little changed after official data on Tuesday showed that the annual rate of consumer inflation in China rose more than expected in June.
Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.19% to 130.17.
Finance ministers from the European Union were to hold talks in Brussels later Tuesday.
