Investing.com - The dollar strengthened to a five-week high against the yen on Monday as investors bought the greenback on sentiment that strong consumer sentiment figures will prompt the Federal Reserve to forgo stimulating the economy with monetary easing measures.
In Asian trading on Monday, USD/JPY was trading at 79.62 up 0.08%, up from a session low of 79.52 and off a high of 79.65.
The pair was likely to find support at 78.33, the low from August 14, and resistance at 79.65, the earlier high.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.
The consumer sentiment report stoked market calls that the U.S. economy will continue to grow and put less pressure on the Federal Reserve to stimulate the economy with easing measures, which would otherwise weaken the dollar to spur recovery.
The data also prompted investors to make bullish calls for indicators due for release later in the week.
On Wednesday, existing home sales data will publish as will the minutes from the Federal Reserve's latest monetary policy meeting.
Strong consumer sentiment figures coupled with healthy retails sales data, industrial production numbers and building permits fueled sentiments inbound indicators will surprise on the upside and lower the chance of Federal Reserve stimulus measures.
The yen was up against the pound and up against the euro, with GBP/JPY down 0.02% and trading at 124.84 and EUR/JPY down 0.03% and trading at 98.10.
Investors will remain focused on Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting while the National Association of Realtors releases existing home sales.
On Tuesday, Japan will release data on its trade balance.
In Asian trading on Monday, USD/JPY was trading at 79.62 up 0.08%, up from a session low of 79.52 and off a high of 79.65.
The pair was likely to find support at 78.33, the low from August 14, and resistance at 79.65, the earlier high.
The Thomson Reuters/University of Michigan preliminary consumer sentiment index for August hit its highest level since May at 73.6, up from 72.3 last month, outpacing economists' forecasts for a 72.4 reading.
The consumer sentiment report stoked market calls that the U.S. economy will continue to grow and put less pressure on the Federal Reserve to stimulate the economy with easing measures, which would otherwise weaken the dollar to spur recovery.
The data also prompted investors to make bullish calls for indicators due for release later in the week.
On Wednesday, existing home sales data will publish as will the minutes from the Federal Reserve's latest monetary policy meeting.
Strong consumer sentiment figures coupled with healthy retails sales data, industrial production numbers and building permits fueled sentiments inbound indicators will surprise on the upside and lower the chance of Federal Reserve stimulus measures.
The yen was up against the pound and up against the euro, with GBP/JPY down 0.02% and trading at 124.84 and EUR/JPY down 0.03% and trading at 98.10.
Investors will remain focused on Wednesday, when the Federal Reserve releases the minutes of its most recent monetary policy meeting while the National Association of Realtors releases existing home sales.
On Tuesday, Japan will release data on its trade balance.