Investing.com - The dollar rose against the yen on Wednesday after Federal Reserve Chairman Ben Bernanke said that the U.S. monetary authority may begin to taper stimulus measures later this year and possibly wrap them up next year if the economy improves.
The Fed earlier left interest rates unchanged and said stimulus programs such as the Fed's USD85 billion monthly bond-buying program stay in place for now.
Stimulus tools tend to weaken the dollar, and talk of their dismantling often strengthens the greenback.
In U.S. trading on Wednesday USD/JPY was trading at 96.79, up 1.53%, up from a session low of 94.84 and off a high of 96.94.
The pair was likely to find resistance at 99.28, the high from June 10, and support at 94.84, the earlier low.
The Fed opted not to scale back monetary stimulus tools though in a statement, the U.S. central bank said downside risks to the economy may be waning.
"The Committee sees the downside risks to the outlook for the economy and the labor market as having diminished since the fall," the Fed said in its statement.
"The Committee also anticipates that inflation over the medium term likely will run at or below its 2 percent objective."
Afterwards, Fed Chairman Bernanke told a press conference that stimulus programs may scale back later this year and end next year provided the economy shows signs of improvement.
The yen, meanwhile, was down against the pound and down against the euro, with GBP/JPY up 0.33% and trading at 149.55 and EUR/JPY trading up 0.42% at 128.20.
Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.
Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting