USD/JPY Near 123.50 with Fed and China in Focus

The safe-haven yen held firm in early trade on Tuesday, as investors remained cautious ahead of a two-day U.S. Federal Reserve meeting beginning later this session.

Markets were also skittish in the wake of a plunge in Chinese equity markets in the previous session, which helped the Japanese currency climb to a nearly two-week high.

The dollar was nearly flat on the day at 123.260 yen after falling as low as 123.010 yen in the previous session, while the euro was buying 136.71 yen, after rising as high as 137.10.