Forex - Dollar rises to more than 1-week highs vs. yen

The dollar rose to more than one-week highs against the yen on Tuesday as strong gains in Asian equities markets overnight dampened safe haven demand for the Japanese currency.

USD/JPY hit highs of 102.32, the most since May 2 and was last up 0.16% to 102.28.

The pair was likely to find support at 101.78, Monday’s low and resistance at 102.65.

Japan’s Nikkei rose 1.95% on Tuesday after the Dow Jones and the S&P 500 closed at record highs on Monday, as indications that the U.S. economy is improving and strong earnings results fuelled a stock market rally.

The dollar shrugged off data showed that industrial production and retail sales in China slowed slightly in April, adding to concerns over a slowdown in the world’s second-largest economy.

The U.S. was to release data on retail sales later in the trading day.

Elsewhere, the euro rose to its highest level in three sessions against the yen, with EUR/JPY rising 0.22% to 140.78.

The euro’s gains were held in check after the European Central Bank indicated last week that it could begin to ease monetary policy as soon as its next meeting in June, to combat persistently low inflation in the euro zone.

The euro was little changed against the dollar, with EUR/USD trading at 1.3762.