Investing.com - The dollar edged higher against the yen on Thursday, after the Federal Reserve rolled back stimulus, but gains were held in check as ongoing turmoil in emerging markets and weak Chinese manufacturing data supported safe haven demand.
USD/JPY hit highs of 102.54 and was last up 0.19% to 102.45, up from Wednesday’s lows of 101.83.
The pair was likely to find support at 101.75, Monday’s low and a seven-week low and resistance at 103.43, Wednesday’s high.
The dollar fell against the yen on Wednesday after the Fed rolled back its bond purchasing program by another $10 billion to $65 billion-per-month, in a widely anticipated decision.
The central bank said growth signals are encouraging, and the unemployment market shows improvement "on balance".
Fears over emerging markets continued to weigh on market sentiment after rate hikes by Turkey and South Africa failed to prop up their currencies. The Turkish lira and the South African rand lost further ground after the Fed announcement.
Market sentiment was further hit after revised data released on Thursday showed that China’s HSBC manufacturing index ticked down to a six-month low of 49.5, below the preliminary estimate for 49.6.
The yen was slightly higher against the euro, with EUR/JPY slipping 0.12% to 139.55.
Elsewhere, the euro was weaker against the dollar, with EUR/USD down 0.25% to 1.3628.