Investing.com - The U.S. dollar slipped lower against the yen on Friday, but remained within close distance of a three-and-a-half week high as hopes for a U.S. rate hike in the coming months continued to support and as markets eyed U.S. economic reports due later in the day.
USD/JPY hit 123.92 during European afternoon trade, the session low; the pair subsequently consolidated at 124.01, slipping 0.10%.
The pair was likely to find support at 123.70, Thursday's low and resistance at 124.37, the high of June 24.
The dollar strengthened after Federal Reserve Chair Janet Yellen's two-day testimony before U.S. Congress left investors believing that interest rates will be raised later this year.
However, speaking to the Senate Banking Committee on Thursday, a day after appearing before the House Financial Services Committee, Yellen again avoided specifying exactly when the Fed is likely to start lifting its benchmark rate from near zero.
The greenback was also boosted after the U.S. Department of Labor reported on Thursday that the number of individuals filing for initial jobless benefits in the week ending July 11 fell by 15,000 to 281,000 from the previous week’s total of 296,000.
Analysts had expected initial jobless claims to fall by 10,000 to 285,000 last week.
Market participants were looking ahead to U.S. reports on inflation and consumer sentiment due later in the day, for further indications on the strength of the economy.
The yen was steady against the euro, with EUR/JPY at 135.04.
The single currency found some support after euro zone ministers agreed on Thursday to give Greece a €7 billion bridging loan from a European Union-wide fund to keep its finances afloat until a bailout is approved.
The loan was expected to be confirmed on Friday by all EU member states.
The news came after the European Central Bank increased its emergency lending to Greek banks by €900 million and added that it is operating under the assumption that Greece will remain in the euro zone.