Forex - Dollar slips lower vs. yen

The dollar edged lower against the yen on Monday, following falls in Japanese equities after weaker-than-expected Chinese manufacturing data.

USD/JPY hit 100.23 during late Asian trade, the session low; the pair subsequently consolidated at 1.00.33, dipping 0.07%.

The pair was likely to find support at 100.00, and resistance at 101.27, Friday’s high.

Earlier Monday, data showed that China’s HSBC manufacturing purchasing managers’ index slid down to 49.2 in May, the lowest level since October 2012, from 49.6 in April. Japan’s Nikkei closed down 3.7% following the report.

The report came one day after official data showed that China’s manufacturing purchasing managers’ index to rose to 50.8 in May from 50.6 in April.

Demand for the dollar continued to be underpinned by expectations that the Federal Reserve will scale back its USD85 billion-a-month asset purchase program later this year. 

Elsewhere, the yen was lower against the euro, with EUR/JPY rising 0.21% to 130.77.

The Institute of Supply Management was to release data on manufacturing activity in the U.S. later Monday.