Forex Pros - The yen pulled back from a one-month high hit against the U.S. dollar on Tuesday, after Japan's finance minister said he will "closely watch" the currency market, in a fresh warning against speculative yen buying.
USD/JPY clawed back up from 79.96, the pair's lowest since May 5 to hit 80.27 during late Asian trade, gaining 0.22%.
The pair was likely to find short-term support at 79.96 and resistance at 81.00, last Friday's high.
The yen's earlier gains came as concerns that the global economic recovery is losing momentum boosted demand for traditional safe haven assets.
"I think the market was affected by [investors'] perceptions toward the U.S. economy, but in any case, I will closely watch developments in the market," Finance Minister Yoshihiko Noda said.
Falls in the dollar-yen rate could impede the nation's expected recovery from a earthquake-induced recession by making Japanese products less competitive abroad.
The yen was also lower against the euro, with EUR/JPY rising 0.64% to hit 117.50.
Later in the day, Federal Reserve Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.