TOKYO (AFX-ASIA) - The dollar turned higher against the yen on bargain-hunting, reaching the 118.00 level in midafternoon trade, after being sold down this morning, dealers said.
"Investors are currently targeting dollar/yen level of 118.50-118.60," Aozora Bank dealing section manager Yoshihiro Nozoe said.
He added the dollar could easily reach the 120.50 level if it breaks through resistance at 118.50-118.60 against the yen - a breach he considers unlikely given likely dollar profit-taking at this level. He does, however, anticipate this level being reached, even if today's U.S. data comes in weaker than analysts' expectations.
U.S. PPI and retail sales data will be released later today.
Finance Minister Kiichi Miyazawa's comments earlier today did not have any major positive impact on the yen, traders said.
Miyazawa said at a news briefing earlier today that he is not worried about the recent falls in the yen and the Tokyo stockmarket as he still thinks the Japanese economy is on an upward trend. The euro turned firmer against the dollar and the yen on some short-covering, dealers said. Nozoe said the euro will meet strong resistance around the 0.9750 level if it gets there.