Investing.com - The dollar moved higher against the yen on Tuesday following Japanese media reports that Prime Minister Shinzo Abe is considering a corporate tax cut.
USD/JPY hit 97.62 during late Asian trade, the highest since August 7; the pair subsequently consolidated at 97.60, gaining 0.73%.
The pair was likely to find support at 95.91, Monday’s low and resistance at 98.57, the high of August 6.
The dollar extended the previous session’s gains against the yen after reports that Prime Minister Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.
Meanwhile, Japan's core machinery orders fell 2.7% in June from the previous month, government data showed Tuesday, less than expectations for a decline of 7.2%.
The dollar strengthened against the other major currencies on Monday amid expectations that U.S. retail sales data due for release later Tuesday would underline the view that the economic recovery strong enough for the Federal Reserve to begin scaling back its asset purchase program later this year.
The yen was also lower against the euro, with EUR/JPY advancing 0.74% to 129.83.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday.
USD/JPY hit 97.62 during late Asian trade, the highest since August 7; the pair subsequently consolidated at 97.60, gaining 0.73%.
The pair was likely to find support at 95.91, Monday’s low and resistance at 98.57, the high of August 6.
The dollar extended the previous session’s gains against the yen after reports that Prime Minister Abe is looking at lowering the corporate tax rate as a way to offset a planned increase in sales tax.
Meanwhile, Japan's core machinery orders fell 2.7% in June from the previous month, government data showed Tuesday, less than expectations for a decline of 7.2%.
The dollar strengthened against the other major currencies on Monday amid expectations that U.S. retail sales data due for release later Tuesday would underline the view that the economic recovery strong enough for the Federal Reserve to begin scaling back its asset purchase program later this year.
The yen was also lower against the euro, with EUR/JPY advancing 0.74% to 129.83.
The ZEW Institute was to release its closely watched report on German economic sentiment later Tuesday.