Forex - Dollar gains ground vs. yen

The dollar rose to two-week highs against the yen on Monday after Federal Reserve Chairman Ben Bernanke said last week that the bank could start to unwind its asset purchase program this year.

USD/JPY hit 98.71 during late Asian trade, the pair’s highest since June 11; the pair subsequently consolidated at 98.47, gaining 0.65%.

The pair was likely to find support at 97.88, the session low and resistance at 99.45, the high of June 6.

Demand for the dollar continued to be underpinned after Ben Bernanke said Wednesday the bank could begin slowing asset purchases by the end of 2013 and wind them down completely by the middle of 2014 if the economy picks up as the central bank expects.

The yen also came under pressure after Japan’s ruling party, led by Prime Minister Shinzo Abe won in majority in a Tokyo assembly election, indicating support for the government.

The yen was lower against the euro, with EUR/JPY rising 0.35% to 1.28.84.

The Ifo institute was to release a report on German business climate later in the trading day.