Investing.com - The dollar fell against the yen on Friday as the Japanese currency became the safe-haven currency of choice amid a global stock-market selloff.
In U.S. trading, USD/JPY was down 0.79% and trading at 102.47, up from a session low of 102.00 and off a high of 103.59.
The pair was expected to test support at 101.62, the low from Dec. 5, and resistance at 104.84, Thursday's high.
A preliminary Chinese HSBC Manufacturing PMI released earlier this week fell to 49.6 for January from 50.5 in December, missing market calls for an uptick to 50.6.
A reading under 50 signifies contraction, and the numbers spooked investors with concerns that emerging-market economies may grow less and sparked a global stock-market selloff.
Investors fleeing risk in emerging markets avoided U.S. equities as well and sought safety in the yen over the dollar.
The Federal Reserve will meet next week to address monetary policy, and markets were expecting monetary authorities to trim USD10 billion from the U.S. central bank's USD75 billion monthly bond-buying program, though the U.S. central bank will likely keep its language on the dovish side, which softened the greenback.
The yen, meanwhile, was up against the euro and up against the pound, with EUR/JPY trading down 1.00% at 140.05, and GBP/JPY trading down 1.72% at 168.92.
In the U.K. earlier, the British Bankers' Association said mortgage approvals rose by GBP46,500 in December, less than the expected 47,200 increase, after an upwardly revised 45,400 rise the previous months.