Investing.com - The U.S. dollar rose to fresh seven-year highs against the yen on Monday, as the Bank of Japan's unexpected decision to add more stimulus continued to weigh on the yen, while Friday's upbeat U.S. data still lent support to the greenback.
USD/JPY hit 112.99 during late Asian trade, the pair's highest since November 2007; the pair subsequently consolidated at 112.66, rising 0.33%.
The pair was likely to find support at 109.15, Friday's low and resistance at 114.65.
The yen came under broad selling pressure on Friday after the BOJ said it would raise its monetary base target to an annual increase of ¥80 trillion from ¥60-70 trillion yen in order to increase the chances of approaching its inflation goal.
Meanwhile, demand for the dollar remained supported after the University of Michigan reported on Friday that its consumer sentiment index rose to a seven-year high of 86.9 this month from 86.4 in September.
In addition, data showed that the Chicago purchasing managers' index rose to a three-and-a-half year high of 66.2 in October from 60.5 in September, confounding expectations for a reading of 60.0.
Elsewhere, the yen was steady against the euro, with EUR/JPY inching up 0.07% to 140.77.
Later in the day, the U.S. was to release a report by the Institute of Supply Management on manufacturing activity.