Dollar eases back from recent highs against yen

The dollar eased back from recent highs against the yen on Tuesday, as investors consolidated their positions following sharp gains in the past several days.

USD/JPY was down 0.22% to 101.46 after rising to highs of 101.91 on Monday, the highest level since late May.

The pair was likely to find support at 100.94, Friday’s low and near-term resistance at 101.91.

The yen found support after the minutes of the Bank of Japan’s October meeting showed some policymakers see a greater downside risk to the economy.

The board noted that the economy is following the path to the bank’s 2% inflation target at a moderate pace. The members also said that there remains a high degree of uncertainty over the medium to long term inflation outlook.

The dollar continued to remain supported by expectations that the Federal Reserve will start rolling back stimulus at one of its next few meetings.

The euro was almost unchanged against the yen, with EUR/JPY dipping 0.02% to 137.39, holding below the four-year high of 137.97 struck on Monday.

Elsewhere, the euro pushed higher against the dollar, with EUR/USD rising 0.19% to 1.3542 from 1.3515 on Monday.


Copyright © 2012 Forex Affairs