Investing.com - The U.S. dollar dropped against the yen on Tuesday, after the Bank of Japan left its monetary policy unchanged and investors remained cautious ahead of the Federal Reserve's policy statement due on Thursday.
USD/JPY hit 119.75 during late Asian trade, the pair's lowest since September 8; the pair subsequently consolidated at 119.77, sliding 0.40%.
The pair was likely to find support at 118.83, the low of September 8 and resistance at 120.83, Monday's high.
Earlier Tuesday, the BoJ said it had not changed its policy calling for ¥80 trillion in annual asset purchases by the central bank, to help spur inflation and stimulate growth.
Meanwhile, sentiment on the dollar 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.
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 declining 0.40% to 135.48.