Investing.com - The U.S. dollar slid lower against the yen on Monday, as demand for the greenback came under pressure amid mounting speculation the Federal Reserve will hold back from raising interest rates this week.
USD/JPY hit 120.09 during European afternoon trade, the pair's lowest since September 10; the pair subsequently consolidated at 120.26, sliding 0.29%.
The pair was likely to find support at 119.77, the low of September 9 and resistance at 121.33, the high of September 10.
Sentiment on the greenback remained vulnerable amid concerns that mixed U.S. economic reports and recent volatility in global financial markets will prompt the U.S. central bank to refrain from hiking interest rates on Thursday.
Data on Friday showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 85.7 from 91.9 in July, compared to forecasts of 91.2.
Separately, the Labor Department reported that the producer price index was flat last month after a 0.2% increase in July.
Fed Chair Janet Yellen has said that an interest rate increase is data dependent but has also indicated that she expects to begin raising rates before the end of the year.
The yen was higher against the euro, with EUR/JPY retreating 0.42% to 136.10.