Investing.com - The dollar strengthened against the yen on Friday after data revealed the U.S. economy grew at a healthy pace in the second quarter of this year.
In U.S. trading, USD/JPY was up 0.53% at 109.32, up from a session low of 108.48 and off a high of 109.33.
The pair was expected to test support at 108.24, Tuesday's low, and resistance at 109.48, last Friday's high.
The dollar advanced after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast, after contracting by 2.1% in the first three months of the year.
U.S. second quarter GDP was initially reported to have increased by 4.2%.
The positive data fueled already growing expectations for rate hikes to kick in earlier next year than once anticipated.
On Thursday, Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015, earlier than many market expectations.
Meanwhile in Japan, data showed that the country's consumer price index rose at an annualized rate of 3.3% this month, missing expectations for a 3.4% increase.
Core consumer price inflation, which excludes fresh food, rose 3.1% in September from a year earlier, missing expectations for an increase of 3.2%.
The yen, meanwhile, was flat against the euro and down against the pound, with EUR/JPY unchanged at 138.64, and GBP/JPY trading up 0.06% at 177.53.