The Japanese yen spiked up against its major counterparts in the early European session on Tuesday amid risk aversion, as global growth worries escalated and oil prices fell for a third straight session on concerns about oversupply.
With a key speech by Chinese President Xi Jinping offering no new specific measures for the implementation of reforms, investors now await the Federal Reserve's monetary policy guidance for clues about future rate hikes.
The Fed begins its two-day policy meeting later today and is expected to raise rates for a fourth time this year. However, the accompanying statement is likely to be dovish amid mounting risks to global growth.
Germany's business confidence slid to its lowest level in over two years, in another indication pointing to a slowdown in growth momentum in Europe's largest economy.
Survey results from the Ifo Institute showed that German business climate index dropped to 101 from 102 in November. Economists had expected a score of 101.7.
The currency was trading higher against its major rivals in the Asian session.
The yen spiked up to an 8-day high of 112.29 against the greenback, from a low of 112.86 seen at 5:30 pm ET. The next possible resistance for the yen is seen around the 110.00 level.
The Japanese currency climbed to near 2-week highs of 113.26 against the franc and 83.76 against the loonie, from its early lows of 113.67 and 84.16, respectively. The yen is seen finding resistance around 111.00 against the franc and 82.5 against the loonie.
Reversing from an early low of 142.46 against the pound, the yen firmed to a 6-day high of 141.94. If the yen rises further, 140.00 is likely seen as its next resistance level.
The yen strengthened to an 8-day high of 80.74 against the aussie, after falling to 81.21 at 5:30 pm ET. On the upside, 78.5 is possibly seen as its next resistance level.
The yen held steady against the euro, following near a 2-week peak of 127.65 touched at 2:25 am ET. The pair closed Monday's deals at 128.03.
The yen bounced off to 77.12 against the kiwi, from a 4-day low of 77.41 seen at 3:30 am ET. The yen is poised to find resistance around the 75.00 region.
Looking ahead, Canada manufacturing sales for October, U.S. housing starts and building permits for November are set for release in the New York session.
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