Investing.com - The dollar rose to two-week highs against the weaker yen on Tuesday after the Bank of Japan kept rates on hold, but extended a bank lending scheme in an attempt to boost the effectiveness of its monetary stimulus program.
USD/JPY hit 102.75, the highest since January 31 and was last up 0.64% to 102.57.
The pair was likely to find support at 101.75, the session low and resistance at 103.00.
The drop in the yen came after the BoJ decided to double part of a growth lending program and said individual banks could borrow twice as much as previously under a second facility.
Policymakers voted to leave its main policy target unchanged. The bank also maintained its upbeat economic assessment, indicating that there will be no further monetary easing in the coming months.
Data on Monday showed that Japan’s economy expanded 1.0% in the final three months of 2013, well below forecasts for growth of 2.8%.
EUR/JPY rose to 140.86, the strongest level since January 29 and was last up 0.60% to 140.52.
Elsewhere, the euro was little changed near three-week highs against the dollar, with EUR/USD dipping 0.01% to 1.3706.
The single currency received lingering support after data last week showed that the euro zone economy grew more strongly than expected in the fourth quarter.