Investing.com - The dollar pushed higher against the yen on Wednesday ahead of what would be closely watched testimony on monetary policy by Federal Reserve Chairman Ben Bernanke later in the global day.
USD/JPY hit 99.66 during late Asian trade, the session high; the pair subsequently consolidated at 99.60, gaining 0.52%.
The pair was likely to find support at 98.66, the low of July 12 and resistance at 100.47, Monday’s high.
Investors were awaiting Bernanke's semiannual congressional testimony amid speculation over the timing of a possible reduction to the bank’s USD85 billion-a-month bond buying program.
The dollar fell sharply last week after Bernanke said the U.S. economy still needed monetary stimulus.
Bernanke was expected to reiterate that the bank could start scaling back its asset purchase program by the end of this year if the economy continues to pick up, but interest rates will remain at record lows for the foreseeable future.
Earlier Wednesday, the minutes of the Bank of Japan’s June meeting said the economy was expected to return to a moderate recovery path and reiterated that the bank’s easing program would remain in place for as long as necessary.
The yen was also lower against the euro, with EUR/JPY rising 0.28% to 130.78.
The U.S. was to release official data on building permits and housing starts later Wednesday.
