Investing.com - The U.S. dollar rose to two-and-a-half week highs against the yen on Wednesday, as demand for the greenback strengthened broadly after Federal Reserve Chair Janet Yellen said the central bank is on track to raise interest rates "before year end."
USD/JPY hit 123.83 during early U.S. trade, the pair's highest since June 26; the pair subsequently consolidated at 123.85, gaining 0.37%.
The pair was likely to find support at 122.92, Tuesday's low and resistance at 123.98, the high of June 26.
In prepared remarks released before her testimony to the House Financial Services committee, Fed Chair Yellen said that the Fed is likely to raise rates "at some point this year." She added that the U.S. labor market healthier but "still some slack."
According to Yellen, the Greek debt crisis, as well as China's recent economic woes, "pose some risks" to U.S. growth.
At the same time, data showed that the Empire State Manufacturing Index rose to 3.86 this month from minus 1.98 the previous month, compared to expectations for a reading of 3.00.
A separate report showed that U.S. producer prices rose 0.4% in June, beating expectations for a 0.2% gain. Year-on-year, producer prices fell 0.7% in July, less than the expected 0.9% decline.
The yen was steady against the euro, with EUR/JPY at 135.76.
Investors remained cautious as Greece's government on Tuesday submitted the bailout terms demanded by eurozone creditors to parliament and as Prime Minister Alexis Tsipras battled for support for the reforms from his ruling anti-austerity Syriza party.
Four pieces of legislation must be passed by the end of the day on Wednesday, including pension and sales tax reforms.