Investing.com - The dollar was steady close to three-and-a-half month lows against the yen on Tuesday, as investors looked ahead to Federal Reserve minutes on Wednesday, while expectations that the Bank of Japan will refrain from further stimulus in the near term supported the yen.
USD/JPY was at 101.42, not far from Monday’s low of 101.09, the weakest level since February 5.
The pair was likely to find support at 101.09 and resistance at 101.90.
Investors remained cautious ahead of the minutes from the Fed’s latest monetary policy meeting on Wednesday, as they awaited insight on the central bank''s view of the economy.
Recent U.S. economic reports indicating that the recovery remains uneven have weighed on U.S. Treasury yields, pressuring the dollar lower.
The BoJ was widely expected to keep monetary policy unchanged at the conclusion of its two-day meeting on Wednesday, after recent comments by Governor Haruhiko Kuroda indicated that the bank’s assessment of the economy remains upbeat.
The euro was also trading at more than three month lows against the yen on Tuesday, with EUR/JPY at 139.00, after falling to lows of 138.60 in the previous session, the lowest since February 7.
Against the dollar, the shared currency was little changed, with EUR/USD at 1.3707, holding above the two-and-a-half month lows of 1.3647 reached late last week.
The euro’s gains were checked by mounting expectations for monetary easing by the European Central Bank at its next meeting in June and data last week showing that the euro zone economy grew at a slower than forecast rate in the first quarter.