Investing.com - The dollar strengthened against the yen on Monday despite hit-or-miss U.S. data, as investors avoided the Japanese currency ahead of a flurry of economic indicators on both sides of the Pacific.
In U.S. trading, USD/JPY was up 0.10% at 109.38, up from a session low of 109.14 and off a high of 109.75.
The pair was expected to test support at 108.45, Friday's low, and resistance at 109.75, the session high.
Expectations for U.S. monetary policy to grow less accommodative at a time when Japan may move to loosen have firmed the dollar in recent sessions, though by Monday, mixed U.S. data was seen as strong enough to keep the greenback in positive territory.
The National Association of Realtors reported earlier that its pending home sales index fell 1.0% to 104.7 in August from 105.8 in July. Economists had expected the index to tick down 0.1% last month.
Separately, the Commerce Department said that U.S. personal spending rose 0.5% in August, beating expectations for an increase of 0.4%, after a 0.1% dip in July.
The report also showed that personal income, reflecting income from wages, investment, and government aid, rose 0.3%, up from 0.2% in July, broadly in line with forecasts.
On Friday, the dollar advanced after the Commerce Department said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast.
In Japan last week, data showed that the country's consumer price index rose at an annualized rate of 3.3% this month, missing expectations for a 3.4% increase.
Core consumer price inflation, which excludes fresh food, rose 3.1% in September from a year earlier, missing expectations for an increase of 3.2%.
The yen remained soft ahead of a slew of economic indicators due out this week.
Later this week, Japan is to publish reports on household spending, retail sales and average earnings, as well as preliminary data on industrial production.
Also this week, Japan is to publish the results of its Tankan manufacturing and services indices, and uncertainty surrounding the data gave the dollar an edge over the yen.
Elsewhere this week, the U.S. is to publish data on business activity in the Chicago region and a report on consumer confidence.
The U.S. is to release the ADP report on private sector job creation, which leads the government’s nonfarm payrolls report by two days.
The Institute of Supply Management is to release a report on manufacturing activity.
The yen, meanwhile, was down against the euro and down against the pound, with EUR/JPY up 0.21% at 138.89, and GBP/JPY trading up 0.19% at 177.85.
