- The dollar was higher against the yen on Tuesday, bolstered by expectations that the Federal Reserve will continue tapering its stimulus program at next week’s policy meeting.

USD/JPY rose to highs of 104.70, the strongest since January 16 and was last up 0.36% to 104.54.

The pair was likely to find support at 103.85, Monday’s low and resistance at 105.00.

Demand for the dollar was underpinned by expectations for a reduction to the Fed’s quantitative easing program at the outcome of its next policy meeting on January 29 to USD65 billion from the current USD75 billion.

Investors were also looking ahead to Wednesday’s outcome of the Bank of Japan’s monthly meeting. The BoJ was expected to announce no changes to its present monetary policy.

The euro was little changed against the dollar, with EUR/USD hitting highs of 1.3562. The pair was last up 0.06% to 1.3560.

Elsewhere, the common currency was higher against the yen, with EUR/JPY advancing 0.44% to 141.82.

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