Investing.com - The U.S. dollar pushed lower against the yen on Tuesday, tumbling over 1% as falling oil prices continued to boost investor demand for the safe-haven yen.
USD/JPY hit 119.06 during U.S. morning trade, the pair's lowest since December 2; the pair subsequently consolidated at 118.47, down 1.85%.
The pair was likely to find support at 118.20, the low of December 2 and resistance at 121.86, Monday's high and a more than seven-year high.
Oil prices dropped to five-year lows Tuesday amid expectations that a growing supply glut would continue to weigh on prices into the new year.
Meanwhile, the dollar remained supported by the diverging monetary policy stance between the Federal Reserve and central banks in Japan and Europe.
Last week’s strong U.S. jobs report for November prompted investors to bring forward expectations for the first hike in interest rates to mid-2015 from September 2015 ahead of the report.
Earlier Tuesday, the Wall Street Journal reported that Fed officials are looking at dropping an assurance that interest rates will stay low for a "considerable time", in its statement, following its upcoming policy meeting next week.
The yen was also higher against the euro, with EUR/JPY declining 0.93% to 147.26.
In the euro zone, official data earlier showed that Germany's trade surplus widened to €20.6 billion in October from €18.6 billion in September, whose figure was revised up from a previously estimated trade surplus of €18.5 billion.
Analysts had expected the trade surplus to widen to €19.2 billion in October.