The Japanese yen climbed against its major counterparts in the Asian session on Tuesday, as China’s crackdown on a wider array of companies continued to dampen risk sentiment.
China tightened regulations for food delivery platforms, ensuring minimum wages.
Beijing also tightened grip on education tech sector, banning tutoring for profit in core school subjects during the academic year.
The Federal Reserve will begin its two-day meeting later today, with investors seeking clues on the timing of tapering the stimulus program.
Powell may indicate that although a discussion on tapering has begun, it’s too early to signal a specific date.
The yield on U.S. 10-year treasury note dipped to a record low on Monday, reflecting worries about the spread of the delta coronavirus variant.
U.S. corporate earnings also remain on investors’ minds, with Google’s parent Alphabet, Apple and Microsoft due to report their earnings later today.
The yen rose to 120.03 against the franc and a session’s high of 129.68 against the euro, off its prior lows of 120.55 and 130.30, respectively. The yen is likely to find resistance around 116 against the franc and 127.00 against the euro.
The yen moved up to a 6-day high of 87.43 against the loonie and a 4-day high of 110.10 against the greenback, after falling to 88.02 and 110.39, respectively in early trading. Next key resistance for the currency is seen around 85.5 against the loonie and 108.00 against the greenback.
The Japanese currency rebounded from its early lows of 81.51 against the aussie and 77.29 against the kiwi and gained to 80.82 and 76.55, respectively. The yen is seen finding resistance around 78.00 against the aussie and 73 against the kiwi.
The yen edged up to 151.78 against the pound, following a session’s low of 152.58 seen at 5:45 pm ET. On the upside, 147.00 is possibly seen as its next resistance level.
Looking ahead, U.S. durable goods orders for June, Federal Housing finance agency’s U.S. house price index and S&P/Case-Shiller home price index for May and consumer confidence index for July will be featured in the New York session.