Investing.com - The dollar slipped lower against the yen on Friday as fresh tensions between the West and Russia over Ukraine bolstered safe haven demand for the Japanese currency.
USD/JPY slipped 0.14% to 102.24 at the close, down from Wednesday’s highs of 102.67. For the week, the pair was 0.34% higher.
The pair was likely to find support at 101.60 and resistance at 102.67, Wednesday’s high.
Caution returned to markets as the political standoff between the West and Russia following the annexation of Crimea escalated, after the U.S. imposed harsher sanctions on Moscow. The European Union also agreed to wider sanctions against Russia on Friday, fanning concerns over the impact on global growth.
The dollar had racked up strong gains against the yen in the previous two sessions, bolstered by expectations that the Federal Reserve could hike interest rates earlier than previously thought.
The dollar strengthened across the board Wednesday after Fed Chair Janet Yellen indicated that the bank could begin to raise interest rates about six months after its bond-buying program winds up, which is expected to happen this fall.
The comments prompted investors to bring forward expectations for a rate hike to as soon as March of next year.
The Fed also reduced its monthly bond purchases by an additional $10 billion to $55 billion at the conclusion of its two-day policy meeting, and said there was “underlying strength in the broader economy.”
Elsewhere, the EUR/JPY ended Friday’s session at 141.09, recovering from one-week lows of 140.44 struck earlier in the day.
The single currency was boosted after data on Friday showed that the region’s current account surplus rose to a record €25.3 billion in January.
In the coming week, investors will be looking ahead to U.S. data from the housing sector, as well as reports on consumer confidence and durable goods. Meanwhile, Japan is to release a flurry of economic reports on Friday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, March 24
The U.S. is to release preliminary data on manufacturing activity.
Tuesday, March 25
The U.S. is to release report on house price inflation and consumer confidence, as well as official data on new home sales.
Wednesday, March 26
The U.S. is to release data on durable goods orders, a leading indicator of production.
Thursday, March 27
The U.S. is to publish final data on fourth quarter economic growth. The nation is also to release the weekly report on initial jobless claims and private sector data on pending home sales.
Friday, March 28
Japan is to release a series of data, including reports on household spending, inflation and retail sales.
The U.S. is to round up the week with a report on personal spending and revised data on consumer sentiment.