Investing.com - The dollar was higher against the yen on Thursday after Federal Reserve Chairman Ben Bernanke indicated Wednesday that the bank still expects to start tapering its asset purchase program by the end of the year.
USD/JPY hit 100.34 during late Asian trade, the highest since July15; the pair subsequently consolidated at 100.29, rising 0.74%.
The pair was likely to find support at 99.03, Wednesday’s low and resistance at 101.20, the high of July 10.
In his semi-annual testimony before the Financial Services Committee in Congress Bernanke said the central bank could scale back its asset purchases if the economy continues to improve, but added that there was no “preset course.”
Bernanke said the bank’s bond purchase program could be tapered at a faster pace, slower pace or even temporarily increased depending on economic and financial developments.
Bernanke said the economic recovery was continuing at a moderate pace but reiterated that monetary policy will remain accommodative for the foreseeable future.
Meanwhile, U.S. data on Wednesday showed that the number of building permits issued in June fell 7.5%, compared to expectations for an increase of 1.5%.
U.S. housing starts plunged by 9.9% last month, missing expectations for an increase of 3.9%.
Elsewhere, the yen was weaker against the euro, with EUR/JPY advancing 0.55% to 131.34.
The U.S. was to release the weekly government report on initial jobless claims and data on the Philly Fed manufacturing index later in the trading day.
