Forex - USD/JPY near 3-week highs, eyes on U.S. data

The U.S. dollar was trading near three-week highs against the yen on Friday, ahead of U.S. new home sales data, as growing expectations for the Federal Reserve to soon begin tapering its stimulus program sent the greenback broadly higher. 

USD/JPY hit 99.15 during European afternoon trade, the pair's highest since August 5; the pair subsequently consolidated at 98.99, rising 0.27%. 

The pair was likely to find support at 97.75, Thursday's low and resistance at 99.95, the high of August 2. 

The greenback remained supported after the minutes of the Fed’s July meeting on Wednesday showed that officials were "broadly comfortable" with plans to start unwinding the bank’s USD85 billion-a-month bond buying program.

However, officials remain divided over the timing of possible reduction, with almost all committee members agreeing that a change in the asset purchase program was not yet appropriate. 

The minutes described recent U.S. economic data as “mixed”, indicating that plans to taper could be pushed back if the economy was to weaken.

The yen was lower against the euro with EUR/JPY gaining 0.29%, to hit 132.19. 

Later in the day, the U.S. was to release official data on new home sales.