Japanese Yen Lower As Biden, Xi Hold Positive Talks

The Japanese yen slipped against its most major counterparts in the Asian session on Tuesday amid safe-haven appeal, as investors cheered constructive talks between United States President Joe Biden and Chinese President Xi Jinping via video link.

Biden said that both leaders should ensure that their competition "does not veer into conflict."

Xi expressed willingness to take active steps and move China-U.S. relations forward in a positive direction.

Xi added that the two countries should improve "communication" and meet the challenges "together".

U.S treasury yields retreated and investors awaited a slew of data, including U.S. retail sales and industrial production for October to assess the strength of the economy.

The yen dropped to a fresh 2-week low of 114.31 against the greenback around 9 pm ET, but it has since rebounded to 114.10.

The yen edged down to 123.64 against the franc and 130.07 against the euro, off its early near a 5-week high 123.22 and near a 6-week high 129.63, respectively. The yen is seen finding support around 126.00 against the franc and 132.00 against the euro.

The yen dipped to a 6-day low of 153.73 against the pound from yesterday's close of 153.03. If the yen extends drop, 155.00 is possibly seen as its support level.

In contrast, the yen bounced off to 83.75 against the aussie, 91.13 against the loonie and 80.26 against the kiwi, reversing from its early 8-day low of 84.16, 6-day lows of 91.48 and 80.67, respectively. The next possible resistance for the yen is seen around 82.00 against the aussie, 90.00 against the loonie and 78.00 against the kiwi.

Looking ahead, Eurozone GDP and employment data for the third quarter are due in the European session.

U.S. retail sales, industrial production and import and export prices for October, business inventories for September and NAHB housing market index for November will be featured in the New York session.