Investing.com - The dollar slid against the yen on Monday though it came off earlier lows as the Japanese currency enjoyed safe-haven demand on concerns a cooling global economy may water down U.S. recovery.
In U.S. trading, USD/JPY was down 0.02% at 106.86, up from a session low of 106.79 and off a high of 107.40.
The pair was expected to test support at 105.18, last Wednesday's low, and resistance at 107.52, last Wednesday's high.
The dollar has strengthened against the yen and most of its counterparts in recent weeks on expectations that U.S. monetary policy will grow less accommodative while European and Asian central banks move in the opposite direction.
Profit taking sent the greenback into negative territory against the yen, a safe-haven currency amid times of uncertainty, amid concerns that even though the U.S. economy is improving, a slowdown in Europe and Asia could dampen recovery.
Germany’s Bundesbank reported earlier the country’s economy barely grew in the third quarter, as industrial output slowed and business sentiment deteriorated.
In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
The ECB launched its new stimulus program on Monday, purchasing covered bonds in a bid to increase liquidity in the region.
The dollar, meanwhile, came off earlier lows as Monday-morning profit taking chipped away at the yen's advance and even sent it dipping into negative territory against other currencies.
The yen was down against the euro and down against the pound, with EUR/JPY up 0.17% at 136.63, and GBP/JPY trading up 0.26% at 172.48.
On Tuesday the U.S. is to release private-sector data on existing home sales.