The yen held near a 3 1/2-month high against the dollar and the euro on Tuesday, supported by diminishing expectations of stimulus by the Bank of Japan as well as falling U.S. and European bond yields.
The dollar traded at 101.54 yen, a day after falling to 101.10 yen, its lowest level since early February – briefly breaking below its 200-day moving average at 101.25 yen.
The chart break was a talking point among yen traders given the dollar has not held below that average except for brief forays in October-November last year. The dollar has largely been in a strong position since late 2012 when Japanese Prime Minister Shinzo Abe’s embarked on aggressive fiscal and monetary easing to revive growth.
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