Investing.com - The U.S. dollar traded higher against the Japanese yen during Tuesday’s Asian session as traders appeared pensive ahead of the start of another Federal Reserve meeting later Tuesday.
In Asian trading Tuesday, USD/JPY rose 0.42% to 94.91. The pair was likely to find resistance at 95.81, Friday's high, and support at 93.80, Thursday's low.
That is not far off the two-month low last week, but the greenback could get a boost if the Fed signals an end is imminent to its USD85 billion per month asset-buying program because monetary easing is usually bad for currencies.
The yen has recently been buoyed by a surprise decision by the Bank of Japan to leave policy unchanged last week after months of rolling out stimulus measures has sparked concerns that the days of ultra-loose policies in the U.S. may be ending.
However, the dollar was able to regain some lost ground against the yen Monday amid profit taking, especially as U.S. stocks gained, which enticed investors out of the Japanese currency and into risk-on equity positions.
Some decent economic news helped the greenback’s cause as well. In U.S. economic news out Monday, the New York Federal Reserve said its Empire State general business conditions index fell to 3.05 in April from 9.24 in March. Economists expected a drop to 7. New orders dropped to 2.20 from 8.18.
The National Association of Home Builders/Wells Fargo builder sentiment index for June jumped to 52 from 44 last month. That was the biggest monthly increase since 2002. Readings above 50 are considered positive. Sales of new homes in the U.S. have risen 29% this year.
Elsewhere, AUD/JPY jumped 0.52% to 90.70 while NZD/JPY added 0.45% to 75.93.
In Asian trading Tuesday, USD/JPY rose 0.42% to 94.91. The pair was likely to find resistance at 95.81, Friday's high, and support at 93.80, Thursday's low.
That is not far off the two-month low last week, but the greenback could get a boost if the Fed signals an end is imminent to its USD85 billion per month asset-buying program because monetary easing is usually bad for currencies.
The yen has recently been buoyed by a surprise decision by the Bank of Japan to leave policy unchanged last week after months of rolling out stimulus measures has sparked concerns that the days of ultra-loose policies in the U.S. may be ending.
However, the dollar was able to regain some lost ground against the yen Monday amid profit taking, especially as U.S. stocks gained, which enticed investors out of the Japanese currency and into risk-on equity positions.
Some decent economic news helped the greenback’s cause as well. In U.S. economic news out Monday, the New York Federal Reserve said its Empire State general business conditions index fell to 3.05 in April from 9.24 in March. Economists expected a drop to 7. New orders dropped to 2.20 from 8.18.
The National Association of Home Builders/Wells Fargo builder sentiment index for June jumped to 52 from 44 last month. That was the biggest monthly increase since 2002. Readings above 50 are considered positive. Sales of new homes in the U.S. have risen 29% this year.
Elsewhere, AUD/JPY jumped 0.52% to 90.70 while NZD/JPY added 0.45% to 75.93.