OTTAWA (dpa-AFX) - The yen climbed against other major currencies in Asian morning deals on Tuesday on bets recent selling was overdone.
Data showed yesterday that the U.S. pending home sales came in weaker-than-forecast in November, casting doubts on the economic recovery. With the Federal Reserve planning to taper its asset purchase program in January, the data build expectations that the central bank may slow down the pace of gradual winding of these measures, as it needs signs of economic improvement to act upon.
Traders focus on the reports on the U.S. home prices, consumer confidence and Chicago-area business activity due later in the day.
The Bank of Japan intention to maintain its monetary easing to arrest deflation, as well as the Fed's tapering had driven the yen down in recent weeks.
The yen climbed to a 2-day high of 104.86 against the greenback, after having touched a new 5-year low of 105.42 on Monday. If the yen extends rise, it may face resistance around the 103.5 zone.
The yen edged up to 118.14 against the franc, compared to Monday's closing quote of 118.38. The next possible upside target for the yen is seen around the 117.00 mark.
The yen approached a 2-day high of 172.94 against the pound, following a multi-year low of 173.95 hit last week. The yen is likely to challenge resistance at the 171.00 region.
The yen has appreciated to 144.72 against the euro, reversing from more than 5-year low of 145.68 reached last week. Further uptrend may see the yen seeking resistance the 143.5 area.
The yen recovered to 98.43 against the Canadian dollar, from its prior low of 98.75. On the upside, the yen is poised to find resistance at the 97.00 mark.
Copyright RTT News/dpa-AFX