Investing.com - The dollar fell against the yen on Tuesday as
investors sought safety in the Japanese currency amid a sell-off in
U.S. stock markets due to sentiments that valuations have grown a
In U.S. trading, USD/JPY was down 0.16% and trading at 102.37,
up from a session low of 102.22 and off a high of 102.58.
The pair was expected to test support at 102.11, Friday's low,
and resistance at 102.65, Monday's high.
U.S. stock indices fell on Tuesday, wiping out several days of
record-high closings on sentiments that prices have risen too high
and were due for a pullback.
The Dow 30, for example, has closed at record highs nine times
in 2014, and the yen served as a safe-haven asset class of choice
on Tuesday, though the dollar did flex its muscles against other
Rising Treasury yields, four months of solid monthly jobs
reports and other upbeat economic indicators in the U.S. cushioned
the dollar's losses against the yen and strengthened it
On Friday, the U.S. Labor Department reported that the economy
added 217,000 in May, close to expectations for a 218,000
It was the fourth consecutive month in which the U.S. economy
added more than 200,000 new nonfarm payrolls.
The private sector added 216,000 jobs last month, exceeding
expectations for a 210,000 gain.
Meanwhile, Treasury yields in the U.S. continued to rise on
expectations that Thursday's retail sales report will come in
strong, prompting investors to reevaluate when the Federal Reserve
will hike interest rates.
Fed officials have said some time will pass between the time
monetary authorities wrap up stimulus programs, currently seen
taking place at the end of this year, and when interest rates rise,
forecast to take place sometime in 2015, though the timing of such
still remains up in the air.
The yield on the U.S. U.S. U.S. 10-Year Treasury note rose to
2.65% earlier Tuesday, its highest in a month.
The yen, meanwhile, was up against the euro and up against the
pound, with EUR/JPY down 0.53% at 138.63, and GBP/JPY trading down
0.46% at 171.48.
On Wednesday, Japan is to publish the latest reading of its BSI
offers an extensive set of professional tools for the financial
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