The Japanese yen strengthened against most major currencies in early European deals on Tuesday, as European stocks declined on fears over global security problems.

The U.S. State Department issued travel alerts to U.S. citizens on Monday, citing threats over terrorist attacks.

"Current information suggests that (Islamic State), al-Qaeda, Boko Haram, and other terrorist groups continue to plan terrorist attacks in multiple regions," the State Department said in its website.

Belgian authorities informed that Brussels would remain shut for the fourth day on Tuesday, as they continue their search for jihadi terrorists, who had played active role in the November 13 Paris attacks.

Gold and silver hovered near six-year lows and platinum slid to a seven-year low on increasing expectations that the Federal Reserve would raise U.S. interest rates next month.

After disappointing existing home sales data, investors eye reports on U.S. third-quarter GDP, home prices, manufacturing and consumer sentiment later in the day for further clues about the health of the world's largest economy.

In economic news, flash survey from Markit Economics showed that Japan's manufacturing activity expanded at the fastest pace in twenty months in November, as output growth quickened.

The Markit/ Nikkei Manufacturing Purchasing Managers' Index, or PMI, rose to 52.8 in November from 52.4 in October. A score above 50 indicates expansion in the sector.

The yen showed mixed trading in Asian deals. While the yen ticked up against the euro and the greenback, it was almost flat against the pound and the franc.

The yen advanced to an 8-day high of 122.40 against the greenback, while reaching 120.27 against the franc, its strongest since March 16. The yen is likely to find resistance around 121.00 against the greenback and 119.00 against the franc.

The yen spiked up to near a 3-week high of 185.14 against the pound, up from an early low of 186.00. Continuation of the yen's uptrend may take it to a resistance around the 184.00 mark.

The yen hit a 6-day high of 79.85 against the kiwi and a 5-day high of 88.03 against the aussie, off its prior lows of 80.21 and 88.52, respectively. The next possible resistance levels for the yen may be located around 78.00 against the kiwi and 87.00 against the aussie.

Reversing from an early low of 92.12 against the loonie, the yen edged up to 91.73. The yen is poised to face resistance around the 90.00 level.

The yen has come off from its prior low of 130.80 against the euro with the pair trading at 130.50. On the upside, 129.00 is possibly seen as the next resistance level for the yen.

Results of a survey by the Ifo Institute showed that German business confidence strengthened unexpectedly in November.

The business climate index rose to 109 in November from 108.2 in October. It was expected to remain unchanged at 108.2.

Looking ahead, the Bank of France new chief Francois Villeroy de Galhau holds news conference on new 20-euro banknote in Paris at 5:30 am ET.

In the New York session, preliminary third quarter U.S. GDP data, U.S. S&P/Case-Shiller home price index for September, U.S. Richmond Fed manufacturing index for November and U.S. consumer confidence index for November are set to be announced.

At 3:30 pm ET, Bank of Canada Deputy Governor Lynn Patterson will give a presentation as part of the bank's regional outreach program at the University of Regina in Canada.

Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Feb 2024 to Mar 2024 Click Here for more Sterling vs Yen Charts.
Sterling vs Yen (FX:GBPJPY)
Forex Chart
From Mar 2023 to Mar 2024 Click Here for more Sterling vs Yen Charts.