Investing.com - The U.S. dollar rose to fresh two-month highs against the yen on Friday, as comments by Japanese Finance Minister Taro Aso on Thursday continued to weigh on the yen, although expectations for the Federal Reserve to hold stimulus limited the greenback's gains.
USD/JPY hit 100.35 during European morning trade, the pair's highest since September 11; the pair subsequently consolidated at 100.36, rising 0.34%.
The pair was likely to find support at 99.13, Thursday's low and resistance at 100.86, the high of July 19.
The yen remained under pressure after Taro Aso said on Thursday that it is important for Japan to retain currency market intervention as a policy option to utilize in time of excess volatility in markets.
The comments came after data showed that Japan’s economy grew by 0.5% in the third quarter, beating forecasts for growth of 0.4%, but the annual rate of growth slowed to 1.9%, down sharply from the 4.3% expansion in the second quarter.
Meanwhile, sentiment on the greenback remained fragile as Federal Reserve Chair nominee Janet Yellen, in a Senate hearing on Thursday, defended the central bank's stimulus measures to bolster growth and called efforts to boost hiring an "imperative".
The comments added to expectations that the Fed's monthly bond purchases may remained unchanged for an extended period of time.
The yen was also lower against the euro with EUR/JPY gaining 0.27%, to hit 134.96.
Later in the day, the U.S. was to release data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.
USD/JPY hit 100.35 during European morning trade, the pair's highest since September 11; the pair subsequently consolidated at 100.36, rising 0.34%.
The pair was likely to find support at 99.13, Thursday's low and resistance at 100.86, the high of July 19.
The yen remained under pressure after Taro Aso said on Thursday that it is important for Japan to retain currency market intervention as a policy option to utilize in time of excess volatility in markets.
The comments came after data showed that Japan’s economy grew by 0.5% in the third quarter, beating forecasts for growth of 0.4%, but the annual rate of growth slowed to 1.9%, down sharply from the 4.3% expansion in the second quarter.
Meanwhile, sentiment on the greenback remained fragile as Federal Reserve Chair nominee Janet Yellen, in a Senate hearing on Thursday, defended the central bank's stimulus measures to bolster growth and called efforts to boost hiring an "imperative".
The comments added to expectations that the Fed's monthly bond purchases may remained unchanged for an extended period of time.
The yen was also lower against the euro with EUR/JPY gaining 0.27%, to hit 134.96.
Later in the day, the U.S. was to release data on manufacturing activity in the New York region, as well as reports on industrial production and import prices.