FOREX-Dollar rises to near 3-wk high vs yen, higher US bond yields support
* Dollar stays firm vs yen after rising 1 pct previous day
* This week's rise in U.S. yields seen as supporting dlr
* Focus also on moves in Japanese shares
* Dollar tests resistance vs yen at 100-day moving average
By Masayuki Kitano and Dominic Lau
SINGAPORE/TOKYO, Aug 23 (Reuters) - The dollar touched a near three-week high versus the yen on Friday, supported by this week's rise in U.S. yields and as Tokyo shares rose after business surveys suggested the global economy was on the mend.
The dollar rose 0.3 percent to 98.98 yen and had touched an intraday high of 99.10 yen, it's highest since Aug. 5.
The dollar was testing resistance right around 99.00 yen, the 100-day moving average, and a focal point was whether it could manage to make a clear break above that hurdle.
"Dollar/yen should continue to resolve topside as U.S. Treasury yields move gradually higher," said Jeffrey Halley, FX trader for Saxo Capital Markets in Singapore.
A break above the 100-day moving average could trigger some stop-loss buying of the dollar and open the way for a rise towards 99.50 yen, Halley added.
The dollar had gained 1 percent versus the yen on Thursday, drawing some strength from a rise in U.S. Treasury yields.
The U.S. 10-year Treasury yield last stood near 2.897 percent, having set a two-year high of 2.936 percent on Thursday. The recent rise in U.S. bond yields, driven by expectations the Federal Reserve may start to unwind its stimulus as early as next month, has increased the attractiveness of dollar-denominated assets.
Treasury yields got a further push higher after minutes of the Fed's July meeting released on Wednesday did little to change market expectations of the Fed's tapering timetable.
Market players were also keeping an eye on moves in Japanese shares, since the yen has maintained an inverse correlation to the benchmark Nikkei share average this year.
The Nikkei climbed 2.4 percent after business surveys suggested the world economy was on the mend, with U.S. and Chinese manufacturing activity at multi-month highs and business activity in the euro zone picking up more than expected.
The yen eased broadly, with the euro touching a one-month high of 132.34 yen on trading platform EBS. The euro last fetched 132.13 yen, up 0.2 percent from late U.S. trade on Thursday.
Against the dollar, the euro slipped 0.1 percent to $1.3350 but remained above Thursday's intraday low near $1.3299.
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