Forex - Dollar moves higher vs. yen

The dollar moved higher against the yen on Tuesday as investors re-examined expectations on how soon the Federal Reserve may start to pull back its asset purchase program following strong U.S. service sector data on Monday.

USD/JPY hit 98.59 during late Asian trade, the session high; the pair subsequently consolidated at 98.56, gaining 0.29%.

The pair was likely to find support at 97.64, the low of August 1 and resistance at 99.56, the high of the same day.

The dollar regained ground against the yen after data on Monday showed that activity in the U.S. services sector expanded at the fastest rate in five months in July.

The Institute of Supply Management said its non-manufacturing purchasing manager's index rose to 56.0 from a three year low of 52.2 in June, as new orders jumped.

The data helped offset the latest U.S. jobs report which showed that the U.S. economy added 162,000 jobs in July, less than the 184,000 increase forecast by economists.

The yen was also lower against the euro, with EUR/JPY rising 0.31% to 130.69.

Germany was to release official data on factory orders later Monday and the U.S. was to produce data on the trade balance.