Investing.com - The dollar slipped lower against the yen on Wednesday, but remained above the previous session’s lows after Federal Reserve Chairwoman Janet Yellen confirmed Tuesday that the U.S. central bank is on track to reduce its stimulus program.
USD/JPY slid 0.11% to 102.50, holding above the lows of 102.06 reached on Tuesday.
The pair was likely to find support at 101.98 and resistance at 103.10.
In her first Congressional testimony since her appointment as Fed Chair, Ms. Yellen told the House Financial Services Committee that the central bank would continue to gradually reduce the pace of its asset purchase program.
She also reiterated that Fed plans to hold interest rates at zero “well past” the time the jobless rate falls below 6.5%.
Investors were beginning to turn their attention to Thursday’s U.S. retail sales report, amid concerns that sales volumes would be lower in January after a 0.2% gain the previous month.
The euro was also slightly lower against the yen, with EUR/JPY sliding 0.18% to 139.70, pulling back from Tuesday’s two-week highs of 140.29.
Market sentiment continued to be underpinned after data released on Wednesday showed that Chinese exports jumped 10.6% in January from a year earlier, far outstripping expectations for 2% gain, while imports jumped 10% and the trade surplus widened.
The data allayed fears over a slowdown in the world’s second-largest economy.
Elsewhere, the euro was steady against the dollar, with EUR/USD dipping 0.01% to 1.3637.
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